Competition between banks has also begun in the consumer-friendly home loan market: there are more significant differences between offers.
The cheapest consumer friendly home loans stay below thm 4 percent, but they only guarantee a fixed installment for 3 years. For the cheapest 10-year or 20-year fixed-term consumer-friendly home loans, thm can go above 6-7 percent, which means a repayment of over $ 70,000.
The housing market continues to dictate a strong pace, which indirectly contributes to the expansion of home lending. Banks offer a variety of home loan schemes that are not easy to navigate. In order to keep the home loan market safe and balanced, the Honest Bank introduced a consumer-friendly home loan rating for home loans from the middle of the year. Competition for consumer-friendly home loans has already begun, which is primarily due to differences in interest rates and overall loan rates, according to a recent analysis by Good Finance , which compared consumer-friendly home loans of 10 million forints to 20 years. bids.
How Much will a Home Loan Become Friendly?
The thm of the cheapest consumer friendly home loan was just over 3 percent, which in the case of this example represents a monthly installment of $ 56,000 over 3 years. Since this is a 3-year interest period, thm and installments may subsequently change as interest rates change. Among the consumer-friendly home loans with a fixed repayment period of up to 5 years, the cheapest is available at less than 4 percent thm. With this arrangement, the installment will be close to 58 thousand HUF, which is guaranteed for 5 years. Long-term fixed-term mortgages for 10 and 20 years are even more predictable, but banks offer them at higher thm above 5-6 percent, and monthly repayments are more than 65 thousand forints on the cheapest.
According to Good Finance credit experts , it is better to take a home loan with a longer interest period . Although they may initially have a higher thm, there is no interest rate risk, meaning that if interest rates rise within 10 or 20 years due to changes in the economic environment, they will not have to pay borrowers any more.
It is no coincidence that so-called variable rate mortgages, which have an interest period of 3 to 12 months, that is to say, a fixed repayment period, are not eligible for consumer-friendly certification. After that, the interest rate may change and, in unfavorable circumstances, the installment may increase.
What is expected?
The balance and sustainable expansion of the retail credit market can be better ensured when the risk of changes in installments is minimal. Therefore, a prerequisite for consumer-friendly certification is that they must guarantee a fixed monthly repayment for at least 3 years, but a fixed repayment may last for 5, 10, 20 years or until the end of the term. This condition is most important in terms of making home loans predictable and safe .
Demand for consumer-friendly home loans may increase in the next period
According to Good Finance , the demand for consumer-friendly home loans may increase in the next period, which may have a positive effect on competition among banks, and as a result, the conditions of home loans may change rapidly, so it is important to be carefully informed before borrowing. , that is, look at the offers of as many banks as possible because there may be significant differences between them.