In recent years, many have taken out various loans due to low interest rates on loans. Mortgage rates have been low so far, but are now sliding down.
Read our article to find out how much mortgage rates have fallen. At the beginning of August, 8 of the 12 banks implemented interest rate cuts. The main reason for this was the decline in interest costs of credit institutions.
The most popular home loan category is the 10 year fixed rate loan
The price of a 10-year fixed -rate home loan is determined by the lending institutions in relation to either the so-called BIRS rate or the yield on 10-year government securities. Both interest rates have declined in the past 3 months.
In the case of financial institutions that reduce interest rates, monthly repayments decreased by 3-3.5%. Banks can adjust not only the interest rate but also the interest discounts available to individual clients. Thus, the beneficial effects of interest rate cuts may be offset by a reduction in interest rate rebates. For those not eligible for an interest rebate, a home loan actually became cheaper in August compared to the previous month.
Some credit institutions have lowered their interest rates on lower income brackets. There are some, where interest rates fell below HUF 10 million.
Further interest rate cuts are expected!
The BIRS interest rate, which determines the pricing of home loans, and the decline in 10-year government bond yields have continued in recent days.
The specific interest rates available to individual families depend on many factors, so it is essential to use a home loan calculator. Try the Good Finance Home Loan Calculator to compare bank offers. In addition to getting a realistic overview of home loan offers, you can save a lot of time by going to the bank of your choice. Using the calculator is very quick, easy and does not involve any obligation. You need to enter the requested information, and then the calculator will list the credit institutions that you may have a chance to borrow. After that, all you have to do is choose the one you like the most.
It is important to know when you take out a home loan
Not just the interest. It is worth looking at THM. This includes other costs that may be incurred when borrowing a home loan. THM includes:
- loan interest
- Loan cover premium, if included in the loan offer
- credit assessment fee
- fee for registering a mortgage at a land registry
- valuation fee
- Fee for on-site inspection of real estate under construction
- account management fee if the bank sets it as a condition of the loan
- disbursement fee if the disbursed loan amount is thereby reduced
- the cost of an unauthorized title deed