That’s what you can borrow without CSOK – Loans
Nowadays, the CSOK is clearly a hit topic in the home loan market, as there are plenty of articles on who and how to qualify for discounts. In fact, articles have already been written about the tricky ways of getting free state millions. Therefore, this time we do not choose CSOK home loans as a topic, but show how much it is nowadays to borrow $ 10 million without CSOK on a market basis.
The biggest interest is in CSOK
When it comes to home loans, nowadays the biggest interest is in CSOK. But we thought we would look around the market a little and show you the terms and conditions for taking out a home loan without CSOK . After all, not every couple is brave enough to have 3 children, even for such a borrowing opportunity. Many people are looking to buy a home as a single, looking for the cheapest credit.
We looked at real estate.com for a selection of homes for rent in Budapest for up to HUF 15 million. Mainly in the XI and XIII. district , because we have good traffic close to the subway lines, but prices are not as high as in the more upscale downtown or Buda districts. Renovated apartments in good condition can be bought for that too, of course our area requirements should not be too high, mostly 35-50 square meters apartments can be found for 15 million in the XI. or XIII. district. This size of apartment can be enough to live alone, but even a couple with a child can find 1.5 or 2 rooms.
The purchase price would be HUF 10 million mortgage, the rest would be own funds. We compared the 10 million loans in four different ways and see the results.
Lower repayment with a fixed repayment
If we are able to do so on the basis of our regular income, it is only worth borrowing for a term of 10 years . This will increase your monthly repayment, but your total repayments will be less than 14 million HUF. Another important consideration is the interest period we choose. The risk-free decision is to choose a 10-year interest period , ie a fixed installment until the end of the term. With this, we will have the same amount of repayments in the first month as in the 10th year, so we can eliminate the risk of interest rates rising over the years.
| Market home loans for used home purchase, 10 million HUF for 10 years | |||||
| Bank and loan name | Initial installment | Total repayable | APR | Interest Period | Initial cost |
| UniCredit Stable Interest Home Loan | 111,652 Ft | 13,349,101 Ft | 6.19% | 10 years | $ 43,080 |
| Budapest Bank Equatorial Market Forint Home Loan – Interest Discount 1 | $ 116,625 | $ 13,851,743 | 7.23% | 10 years | $ 62,980 |
| CIB Throughout FIX Home Loans | 114,993 Ft | 13,901,930 Ft | 7.21% | 10 years | $ 41,000 |
| MKB Interest Fixer Forint Home Loan – Normal conditions | $ 117,271 | 14,137,610 Ft | 7.74% | 10 years | $ 12,600 |
Source: Bankruptcy – 12/01/2016
Lower repayable variable repayment
It is also worth looking at what is the case with a 10 year maturity but with an interest period shorter than 10 years. The undoubted advantage of this choice is that it will leave you with a total repayment of up to HUF 12 million, and in return we take the risk of changing every year for 10 years, thus increasing interest rates and thus monthly repayment installments. If we were to take on the risk of a non-fixed repayment, these would be the best options:
| Market home loans for used home purchase, 10 million HUF for 10 years | |||||
| Bank and loan name | Initial installment | Total repayable | APR | Interest Period | Initial cost |
| K&H Bank with business -starting HUF home loan – starting fees | $ 99,590 | $ 12,041,408 | 3.88% | One year | $ 12,600 |
| OTP Home Creation Home Loan | $ 100,595 | $ 12,171,390 | 4.29% | One year | $ 130,000 |
| Mohácsi TakarékBank Home Creation Loan | $ 100,387 | 12,227,158 Ft | 4.28% | One year | $ 150,100 |
| MKB Bank Home Creation Loan 2012 | $ 100,387 | $ 12,257,498 | 4.41% | One year | $ 158,600 |
| Granite Bank Home Loan | 102,026 Ft | $ 12,261,999 | 4.29% | 3 months | $ 55,150 |
Source: Bankruptcy – 12/01/2016
Lower repayment with less risk
If you choose a maturity of 20 years , you will expect lower monthly installments, but the total repayment will be much higher than for a 10 year maturity. The table below compares loans with a 5-year interest rate , as for a longer period we would only be able to choose a fixed rate at a few banks. Interestingly, if we were to have the longest interest period of 20 years, then we would have to pay $ 77,619 and pay back a total of $ 18,621,806.
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Market home loans for used home purchase, 10 million HUF for 20 years |
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| Bank and loan name | Initial installment | Total repayable | APR | Interest Period | Initial cost |
| OTP Home Creation Home Loan | 72 125 Ft | $ 15,648,967 | 5.26% | 5 years | $ 130,000 |
| Erste Bank Home loan interest rate subsidized home loan | 71,107 Ft | $ 16,340,070 | 5.61% | 5 years | $ 42,600 |
| Budapest Bank Equatorial Market Forint Home Loan – Interest Discount 1 | 72,221 Ft | $ 16,395,460 | 5.95% | 5 years | $ 62,980 |
| K&H Bank with business -starting HUF home loan – starting fees | $ 69,185 | $ 16,722,925 | 5.85% | 5 years | $ 12,600 |
| UniCredit home loan | $ 71,741 | $ 17,260,587 | 6.24% | 5 years | $ 95,080 |
Source: Bankruptcy – 12/01/2016
Lower repayment with higher risk
Let’s stay ahead of the 20-year maturity and see what happens if we take the risk of a shorter interest period . Thus, our installments may be the lowest and the total amount repayable is less than for a 5-year interest period, but this carries the risk that the interest rate may change annually or every 3 months, and thus the monthly installment may increase (or even decrease). . It is worth noting that the central bank base rate is so low at the moment, and as a result, the interest rates on the loans are so low that a further decline is not expected . However, if we were to take the risk for a lower installment, these would be the best credit options available today:
|
Market home loans for used home purchase, 10 million HUF for 20 years |
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| Bank and loan name | Initial installment | Total repayable | APR | Interest Period | Initial cost |
| K&H Bank with business -starting HUF home loan – starting fees | $ 58,770 | $ 14,273,333 | 3.86% | 3 months | $ 12,600 |
| OTP Home Creation Home Loan | $ 59,878 | $ 14,470,753 | 4.15% | One year | $ 130,000 |
| Mohácsi TakarékBank Home Creation Loan | $ 59,649 | $ 14,526,950 | 4.12% | One year | $ 150,100 |
| MKB Bank Home Creation Loan 2012 | $ 59,649 | $ 14,579,130 | 4.20% | One year | $ 158,600 |
| CIB UNO Home Loan With Interest Discount | 61,968 Ft | $ 15,030,297 | 4.49% | One year | $ 41,000 |
Source: Bankruptcy – 12/01/2016
If you are curious about what the expected income is, what the interest rate discount is, and how much the bank will reimburse for the upfront costs, you can find this information in the BankRation’s credit calculator . We hope this article provides a good guide to the available mortgage loans and helps our readers find the most optimal borrowing options.