New Year’s good advice for buying a home or borrowing!
Suggestions for those who are thinking about buying a home in 2019!
Here are some good tips that we have put together, and we think you might find it useful to buy an apartment or house in 2019. Housing prices have risen significantly, interest rates are low, and we have tried to give you tips to save money!
1. How much is that?
– How much can you raise as your own contribution?
– How much loan repayment installments your income, even in the long run!
– What is the amount of money, emergency reserve, which can help to temporarily survive the financial troubled period?
2. Amount of the loan?
What determines how much credit you can get?
- It depends on the market value of the property offered as collateral and the amount of your justifiable income. Financial institutions can lend up to 80% of the real estate value of the property, but banks want to go up to 50-60% to ensure that the collateral remains behind the loan. Buying an apartment for $ 20 million requires at least $ 4 million of deductible.
- The other limit to our credit is the amount of certified income.
“The MNB debt brake rule clearly describes the maximum amount of loan repayments that can be made in relation to certified income. For incomes below $ 400K, this is 25%, 35% and 50%, depending on the interest period of the loan. For loans with a fixed interest rate of 10 years or more, the ceiling is 50%, and for periods of less than 5 years, up to a quarter of the income can be used for loan repayment. ”
3. Let’s look at the territorial dispersion!
Prices are already high in the most upscale parts of Good Finance, so that by 2019 the rise may slow down significantly, and even a fall in prices will not be ruled out, resulting in a price correction.
The price increase in the big cities of the country is still far from the maximum, and the prices per square meter are still lower here than in Good Finance, so there is an opportunity for price increase.
Here are some specific examples of downtown prices for a county:
Good Finance: 871 thousand HUF / m2
Szeged: 323 thousand HUF / m2
Szombathely: 400 thousand HUF / m2
Pécs: 317 thousand HUF / m2
If you have everything to do with Good Finance, both your work and family life, then you have room for maneuver if you are not looking for the dream home in the most sought after areas!
When the price of downtown and frequented neighborhoods is so high, you might want to look at the otherwise less popular locations.
Csepel, Kőbánya and the 16th century are becoming increasingly popular and relatively cheap in Good Finance. district, but more and more people are moving to the agglomeration areas like Vác, Dunakeszi, Délegyháza or Érd.
This is perfectly understandable, as they can get a newly built detached house or terraced house for the price of a panel flat in Good Finance.
4. Expected interest rate increase!
The largest rise in loan interest rates is expected for loans with a maturity of 10 to 30 years, which you cannot ignore.
Who would buy real estate in 2019,
“Then you should not choose the cheapest loans with a variable interest rate every three months or every year, but rather those with longer interest rates that are more resistant to interest rate increases. For fixed-term loans of 5, 10 or 15 years, interest rates cannot increase during the interest period, ”we quoted the words of our independent financial advisor.
If you are absolutely certain, you should choose fixed rate home loans throughout your term. However, you need to calculate that the longer the interest rate is fixed, the higher the monthly installment will be. This is because a financial institution only takes over the credit risk at a premium.
Here are some examples of monthly installments:
– Loan of HUF 10 million for 20 years with a one-year interest rate: HUF 54,105
– HUF 10 million loan for 20 years, with a 5-year interest period: HUF 59,029
– HUF 10 million loan for 20 years, with a 10-year interest period: HUF 62,995
– HUF 10 million loan for 20 years with fixed interest rate: HUF 68,700
In case of a 10 million HUF loan with a floating interest rate for 20 years, the monthly repayment can increase by 15 thousand HUF if the loan interest rate increases by 3%.
5. Choose your home loan wisely!
You can save a lot of money by carefully comparing your loan offerings. Here’s an example of a $ 10 million loan for 20 years among the best and most expensive offers:
– HUF 3.5 million for 1-year fixed interest loans,
– HUF 2.7 million for 5-year mortgages,
– HUF 3.5 million for 10-year mortgages,
– the difference is HUF 3.7 million for fixed rate home loans.
6. And what is the potential of the new GFIC-related loan?
As of December 1, two-child children will be eligible for a $ 10 million 3% discount home loan, and three-child children will be eligible for a $ 15 million discount home loan, the minister announced.
– If they meet the conditions, families with two children may have a HUF 2.6-2.7 million better credit compared to a market-based home loan.
And of course here is the non-refundable GFIC support:
For buying and expanding a used home:
– With 1 child: 600,000 Ft
– With 2 children: $ 430,000
– With 3 children: $ 2,000
– With 4 or more children: $ 2,000
To buy a newly built property:
– With 1 child: $ 200
– With 2 children: $ 10,000
– With 3 or more children: $ 50,000
According to statistics on childbirth among new GFIC users, 31% of families have one child, 34% have two children, 25% have large families and 11% have no children yet. According to statistics, young people generally want two or more children.
“By expanding the GFIC, the government is also encouraging and promoting the birth of the children they desire – we have heard the acclaim of Jessica Brown.
All the information about new family home improvement, changes and affordable home loans is all in one place if you need it. We answer individual cases, explore the most important practical issues, and help adjust to the new GFIC.
Call our credit broker, fill out the form and we will call you back!