With a small amount of home savings loans, can you get a bank loan?

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Despite the rise in property prices, many are buying homes. Few people in Hungary today can buy a property for cash. If you also need credit to buy a home of your choice, you must be aware that you will not be able to do it yourself, that is, without your own money, or that it will be very difficult.

There are some banks where it is possible to buy real estate without own resources, but there are other conditions for this and it is not completely harmless.

There is a statutory funding limit for home loans

There is a statutory funding limit for home loans

This is 80% of the net realizable value of forint-based credit facilities. Of course, this does not mean that you can borrow that amount, and that only requires 20% of your own funds. Banks’ own financing rate allows them to take out a smaller mortgage loan, and the minimum own funds ratio is usually more than 20%.

Self-sufficiency can be generated from a variety of sources, such as bank deposits or other savings. If you know ahead of time that you want to put the money you put aside for home purposes, the most obvious solution is to open up a home savings business, as banks accept this as self-sufficiency.

The majority of the population choose this form of saving, because it can also get a preferential loan where you saved your home. However, it may not be enough to have the own funds or credit available to buy the property you are looking for. The only question is whether it is possible to borrow other bank loans for the property to be purchased in addition to the home savings loan.

Home saving or bank?

Home saving or bank?

The mortgage market can be divided into two main branches. One is a loan from a bank, and the other is a loan that can be taken alongside the amount you save in a home savings fund. Everyone is aware that banks provide home loans. However, few people know that home savings banks also provide home loans.

In addition to the amount set aside for home savings, the state grants a non-refundable subsidy of 30% and, if necessary, a home loan can be included. The 30% allowance can be multiplied by signing a contract for the name of a close relative so that you have a higher amount.

Depending on the contract amount (total own contribution + government subsidy + deposit interest + home loan taken), the total amount of money that can be spent on the property from the home savings. It is worthwhile to have a higher amount of home savings and a longer term, as this will increase the contractual amount.

If you do not want to wait until the end of your term

If you do not want to wait until the end of your term

You want to buy a home first and then take out a discounted home loan, you can do so. This is nothing but a bridging loan. This allows you to save your savings and your loan amount right from the start.

The contract amount may not be enough to buy a property and you still need some money. This is when many people come up with the idea, which would be basically obvious, is that it is possible to get a bank loan along with the money. Unfortunately, in practice, it doesn’t work that easily. The combination of the two mortgages is not feasible when buying a property. The mortgage entry only works for one property, meaning that banks do not really tolerate other mortgages (first rank) on the property’s home page.

In this case, another solution might be to incorporate another property as collateral. However, this is not a very secure option and should only be undertaken if you are certain that you will be able to pay both loans, because in the event of non-payment, both properties may disappear.

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