When it comes to taking out a home loan, it is very important that you have full coverage orientation and comparison reviewing the differences between loans as we are facing the big decision in our lives!
Here are a bunch of questions you should be aware of when borrowing! Understanding the information and deciding on the choice is not an easy task. Don’t know the basics without knowing the basics!
What is a Hedged and Unsecured Loan?
If you do not have the full amount to buy the property, we consider it a good solution to make up the missing amount with a home loan.
Home loans are different from other forms of credit, as they can only be applied for and used for home purposes. Ex .:
- Buying a new home,
- purchase of used real estate,
- renovation, expansion,
- or just replacing a previously taken home loan.
It is not always necessary to have real estate collateral, if you have a real estate we can charge, but we do not have enough cash, we are talking about mortgages. This is exactly what a home loan is, since the bank asks for a real estate offer, and if the customer does not pay, this real estate will secure the loan along with all the contributions that the bank will then own, reducing the bank’s risk.
All in all, home loans are the lowest interest rate mortgages, which are very beneficial for well paying customers.
Unsecured loans are paid out by credit institutions at significantly higher rates, as the bank’s risk is not protected against non-paying customers (such as personal loans).
Advantages of home loans include:
- The long maturity, which can be up to 30 years,
- And there may be several government discounts on the loan, such as the very popular CSOK or home savings.
How much credit can we get and what does it depend on?
- First step is how much home loan can we expect?
- You have to know that the loan is always unique because there are no two situations, each family is unique and the conditions may depend on the practice of the bank you choose!
- the amount of the loan may not exceed 80% of the value of the property. Real estate is different, and variable values are determined by the expert during the valuation,
- “According to the specific rules, the net income is max. 50% of it is devoted to loan repayment “(60% above HUF 400,000), banking practice is stricter, and generally it is 35-40%.”