Domestic commercial credit institutions offer low-interest home loans, of which 2.12% at variable rates and up to 3.15% at fixed rates.
If you cleverly combine your home loan with a couple of LTP Home Savings Cash Contracts, it could even turn out to be up to 0% off.
Apartment savings can also be used for prepayment and final repayment! Here are the calculations to prove it!
Let’s look at the latest statistics from August
- floating rate (ie up to 1 year) mortgages averaged 3.15%,
- and fixed-rate (ie at least 3-year) housing loans had an average interest rate of 4.91% to 6.05%.
Mortgage rates are at historic lows.
Higher income earners get better, below average credit rates
Cheapest Home Loans:
Variable rate options:
- Uni Credit: 2.11% for 12 months
- MKB: 2.33% for 6 months
- Erste: 2.36% for 6 months
- Erste fix 3.15% for 3 years
- K&H fix 3.89% for 3 years
- UniCredit fix 4.00% for 5 years
We are now revealing the secret that can be achieved with 30% state interest subsidy. If tied for 4 years, it can generate returns of up to 10% on paid-in capital, but this alone is not enough, and a combination of multiple components is required to solve it.
- you need to sign up for up to 3 LTP savings of up to 3,000 at a time. volume effect,
- We have to replenish our loan every 4 years with the expired LTP (time effect) and of course
- and the interest rate on the home loan should be as low as possible (interest effect).
Since a single LTP yield of over 10% will not nullify or negate the interest rate on your home loan, we must sacrifice more LTP contracts every 4 years.
This will help us to reduce our debt as soon as possible and at a faster rate, and thus to make our repayments more favorable.
In our example:
- HUF 10 million home loan for 20 years at 2.11% interest
- Monthly savings of HUF 20,000 for 3 family members
- If the 4-year maturity period expires, you will repay the principal and make new ones until the end of the term.
In our example, the monthly repayment is HUF 51,000 / month, and the three LTPs of 20,000 HUF are HUF 60,000 / month, which means an initial payment of HUF 111,000 / month plus payment. After 4 years, it repaid the 3.9 million HUF, which was accumulated with the subsidized state subsidy. At the end of the next 4-year LTP pre-savings cycle, you will have $ 580,000 left for other home purposes after the home loan is repaid. eg. renovation.
With this method, we will get rid of the original 20-year home loan in 8 years
- our low 2.11% interest rate is calculated to drop to -0.17% with LTP, which means that the “financial system” pays for money even though we used a home loan.
We did not consider the interest rate risk in our calculations, as we have a favorable option even if we take a 3.15% fixed 3 year home loan. With this variation, we’ll have almost $ 400,000 left in our account after the end of the 8th year, which can be used for other housing purposes so that we can get interest at almost exactly 0%.
Since the introduction of consumer-friendly home loans, more and more fixed-rate loans have come on the market, offering such and similarly favorable opportunities.
The contract fees, which may be a couple of tens of thousands of forints (sometimes released), are not included in this example, as it can be seen that this amount is far diminished by the savings that can be made with the above variation.
In conclusion, this is truly the best opportunity on the market today. It is true that during these 8 years, it will be a much greater burden for clients, but they can acquire real estate assets by combining home loan and LTP.
Well, that’s the big trick that can be done!
If you are interested, you would like to know the details, you would like to get a home loan on favorable terms, consult our credit broker experts and ask for your opinion and accept professional help in making your choice! Fill out the questionnaire, we’ll call you back!