There is a difference between a 5 (10) year loan term and a 5 (10) year interest rate loan type (for this loan, the loan applicant can modify the loan term later) and a fixed interest rate 5 (10) year offer (here maturity). In the first case, income can be charged up to 40% and in the second case up to 60%.
The Good Finance would also like to take out a mortgage of HUF 10 million. They have a specific expectation, not in terms of installment, but in terms of maturity. I would like to repay the entire loan within 5 years. The proven monthly net income of the Good Finance is HUF 450,000.
5 year maturity, 5 year interest rate
HUF 185,048 monthly repayment, 3.52% interest rate was the best offer. This offer is well-liked by the family in all aspects, and they also require credit. However, the credit assessment (preferably during the pre-qualification) reveals that due to the JTM regulation, they can only obtain credit for a longer term. The maturity is sure to be longer and the total cost of the loan will also increase. Depending on the decision of the blacksmiths (see the dilemma of Béla and Matild), interest may also increase or not be fixed at all times.
They need a loan for a fixed rate of 5 years
Then they can charge up to 60% of their income – so they are absolutely creditworthy.
Fixed interest rate for 5 years: HUF 182,245 monthly installment, 2.90% interest
Lower best fixed rate than before. This is obviously the case with new futures , owing to the lack of history, but the best interest rates for the entire market have also fallen in the case of 5, 10, 15 year old fixed bids. It is in 20 fixed categories and had a better offer. (4.99%) Pricing will be discussed below.
Hopefully this situation will motivate other financial institutions to introduce similar products …
It is also evident from the examples above that the pricing of E-Money Bank’s new loan product is highly competitive over several maturities. In many cases, it is more favorable than the most advantageous offer with a shorter maturity than five times the interest rate. Of course, it is far from the case that at every maturity, for every client that the bank finds to be client-friendly, the E-Money Bank home loan is the best deal.
To summarize the key achievements of the new credit product
From now on, FIX offers are available at very attractive rates for people who are not looking to borrow for 10.15 or 20 years. Those who prefer FIX all the time are not forced to settle for longer term terms with poorer conditions or variable interest rates because of the inflexible banking supply.
For customers up to and including 18 years crediting their E-Money bank account for $ 400,000 a month, the interest rate on their home loan will be better than choosing another offer where the interest rate is equal to the maturity or the interest period can be divided by the maturity term. lower neighbor.
For fixed maturities of 10 years or less, these fixed-rate offers are the lowest interest rates, regardless of the amount of credit.
After October 1, only these credit products can be used to charge up to 50-60% of their verifiable income for maturities shorter than 10 years. That is, these will be the loans with the shortest possible maturity.