The home loan market has been waiting a long time since the January 2019 announcements. At that time, they announced the possibilities of GFI for used real estate, the introduction of village GFI and the Baby Insurance Loan (Baby Insurance Support) within the framework of the Family Support Program as of 01.07.2019. With the introduction of new state subsidies, the housing loan market has gained momentum again.
Eligible for non-refundable support
Most of the claimants are still taking on the opportunity provided by the state budget at OTP Bank within the framework of home improvement discounts. Since the launch of GFI on 01.07.2015, the bank has contracted more than 41,000 transactions for a total amount of over $ 135 billion. Approximately 70 percent of GFI applicants are eligible for non-refundable support for the number of existing and enrolled children he also needed some kind of home loan, where the average loan size per 1 loan is approx. was 10 million forints. In the first half of 2019, it was felt that applicants were waiting. After the loosening of GFI rules was announced in January. This also showed that in the first half of 2019, thousands of claims were filed compared to the same period of 2018. This was about 5,000 applications, compared to 6,000 in the first half of 2018.
We also get interesting data from GFI usage statistics. The clients requested the most support for the construction. Entry # 2 will take about one minute to claim. one third was GFI, which helps to buy new real estate. The form of support for buying used properties was not so popular, so it closed in last place.
Analysts believe the downturn was likely due to the easing promised by July 2019. As it was already ventilated in January that serious positive changes can be expected from the 1st of July 2019, but no concrete details were said. The news was constantly dripping with new and more recent changes, and everywhere there was something different about what was going to happen in reality.
Therefore, most people were waiting for what they were going to be specific about. However, since the extension of the family support program, that is, the introduction of GFI reliefs, village GFI and Baby Insurance support, there has also been a marked increase in interest in subsidies for previously less performing properties.
The easiest thing to do was the lifting of the restriction that the purchase price of the used real estate covered by the GFI could not exceed 35 million HUF as of 1 July this year. Another major driving force is that the mortgage loan, which can be applied for with the GFI and can be borrowed at 3% for up to 25 years, has also been made available for the purchase of used properties.
In addition to the purchase of a used residential property, the newly established village GFI also offers opportunities for expansion and / or modernization. Moreover, in the places listed in the village list of GFI, it is permitted to extend and / or modernize the existing residential property.
What is the source composition of real estate purchases?
Banks’ research shows that homeowners account for the bulk of the purchase price of real estate for their clients. This is most often supplemented with own savings and / or selling prices of previously sold homes. To a lesser extent, the family also helps to establish the purchase price, but this is usually only a negligible part of the total purchase price.
Home loans are available not only in the form of government subsidized loans , but also in the form of so-called ‘market home loans’ .
In many cases, the maximum amount of loans that can be taken up, which can be $ 10 million for 2 children and $ 15 million for 3 children, is not enough for the total purchase price. In this case, we can supplement the missing purchase price by applying for the above-mentioned market home loan.
Banks’ market-based home loan offers are available at very different rates. With a more expensive borrowing, you can repay the bank millions more forints by the end of the term. Therefore, be sure to seek the help of our independent credit broker to help you make the final decision and choose your bank. With our expertise, you are sure to choose the one that best suits you and does not waste any money on the window. In addition, you will be sure to take advantage of all the government support you receive.
The interest period is also very important!
GFI loans provide a fixed interest rate of 3% for a maximum of 25 years. This has been enshrined in law. Of course, interest rate fixation also has a shorter maturity.
When applying for a market home loan, the customer has to decide how long they want the interest rate to remain unchanged. This is shown by the length of the interest period.
For example, a fixed interest rate of 5 years means that we know the level of interest during the first 5 years of the term, since the contracted interest cannot change for 5 years. At the end of the first interest period, ie after the first 5 years, the loan is re-priced for the entire interest period 2. This means that we will pay the installment at the new price from Year 5 to Year 10. It may rise and fall, but due to the current low interest rate environment, the market does not expect further decline. Thus, in the second five-year interest period (5-10 years), if the above example were to be used, the installment paid in the first five years would probably remain unchanged because interest rates would not rise. Or, the installment payment becomes more expensive in proportion to any interest rate increase.
Nowadays fixation is more typical!
According to analysts, in January 2018, the proportion of loans with a minimum 5-year interest rate fixation among new mortgages was only 60%. This figure was over 90% by the end of 2019.
There is also a significant reshuffle within loans with a fixed interest rate period: 10-year fixation, or even full-term fixation, is now much more sought after. This way, he overtook the previous favorite, which was the 5-year interest period.
By the end of the first half of this year, more than 75% of the fixed home loans had already been called “Qualified Consumer Friendly Home Loans”.
Seek professional help to understand the risks and select interest periods. During the process, we will also find out which bank offers the best interest rate (lowest interest rate) for the selected interest period. All of this is free of charge, as our salary is always paid by the bank you choose, but only when you have already received your credit.
So you only have the benefit of having the help of our staff!
All you have to do is enter your information into the form below. Our credit broker will soon be looking for you with available government subsidies and the best banking offer.
- Get a payday loan online -Visit our site to Request a new online payday loan
- Take advantage of your pocket this summer and save with these tips!
- How do you borrow as cheaply as possible? | Cheap Loan
- Risk-availing home loan schemes!
- Which one should we choose? Will baby support or GFIC credit be appropriate?