If you need a cheap loan with favorable conditions, you should decide on this mortgage loan ! Let’s show why!
In the case of a mortgage loan, the loan is given to the real estate as collateral (up to 80% of the market value of the offered property can be debited with a loan). If the debtor does not repay in time, the financial institution can enforce the collateral, ie sell the property. So in this type of loan you should only think if repayment is not a problem.
Types of mortgage loans
There are two basic types: a home loan with a free use and a much more favorable condition. The latter can also be used to buy, modernize, upgrade, build or renovate an apartment. The assessment period is usually two weeks . In order to receive the required amount you have to meet several criteria!
Mortgage loan application criteria
- You must submit a certificate of claim. Our monthly salary must reach at least the minimum wage. The size of the loan depends on the size of the claim.
- We can only get credit if we have 18 but we are not older than 70.
- If you do not have it, you must take out insurance on the property, which cannot be terminated during the term.
- If we do not have a Hungarian permanent address, we need a residence permit.
- In the Central Credit Information System (KHR – formerly BAR) we must not be on the negative debtor list or our borrowing history must be orderly. Often you can only get the amount you have paid, who always paid your obligations on time.
- In the case of an employee relationship, at least 3 months’ employment is required.
- The encumbered property must not be subject to judicial proceedings, it must be free of charges, and its value must reach HUF 4-6 million. However, you must have a valid license to use. And the property must meet the conditions of marketability and value that the financial institution requires.
- There are some types of real estate that cannot be accepted as collateral: for example, a workshop, an economic and a catering unit.
The maturity of mortgage loans can take up to several decades to reach 30 years. Since banks do not want to burden the family in the event of a debtor’s early death, they often sign the contract for credit insurance.
Before recording, you should use a mortgage calculator : there are also bank-independent solutions that help you compare different offers. We looked at the good deals and, as it turned out, a 7 million loan for a 25-year maturity can be raised with a repayment installment of about $ 34,000 a month.