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In some cases, the change may be felt, as home loan applicants feel little about rising interest rates due to rising yields in May and July this year. There are also banks that do not have the same housing loan conditions.
Last month we already announced the start of the change. Initial interest rates on consumer-friendly home loans have been changed by several banks, raising interest rates, of course.
- Banks also raised 22 consumer-friendly loans.
- In the case of 12 banks, the initial interest rates were adjusted upwards by Budapest and UniCredit,
- Only one out of four of K&H’s loans changed interest rates.
We have to understand that banks can only bear to increase the benchmark interest rate to a certain extent, after which they must surely get involved.
There are 2 parts to consumer-friendly interest:
One is the reference rate, the other is the interest premium. “In the meantime, the bank can only intervene in fixed loans, and most of all, you can decide what kind of interest rate to set when you start. You have to pay attention to the fact that you cannot give a loan 3.5% more expensive, ”said the independent expert!
So if the interest rate premium is fixed and the benchmark interest rate keeps rising, the bank may raise the interest rate on the loan according to the benchmark. If you do not do this, you will have to lower your interest margin, which you can no longer bear under a level (this is where your profits are built in). But in the past two months, there has been a significant shift in yields!
Reference interest rates and government securities changes
- 3 Year Interest Rate Period: 0.02-0.30% (+ 0.77%)
- 5 year interest rate: 0.25-0.89% (+ 0.78%)
- 10 Year Interest Rate Period: 0.25-1.14% (+ 1.14%)
- fixed rate loan: 0.94% (+ 0.94%).
According to them, the banks did not make drastic increases. Interest rates have been extremely low, so that mortgages can be considered almost cheap compared to the 3% cash collapse.
If an average family pays $ 10 million for a 20-year term, with a monthly income of $ 350,000, almost every bank offers a home loan product at interest rates ranging from 3.65% to 5.66% for a fixed term of 3.5.10.
Despite the weakening of the Forint, the monthly repayment installment of 10-year fixed-rate loans may decrease in case of K&H, MKB, OTP banks. The big decision in our lives is to make a home loan, prudent, foresighted, thoughtful and responsible.
We would also like to help you with the administration, we can offer different current loan offers without having to visit several banks. We offer free, convenient, fast, reliable administration, and our credit intermediaries are guaranteed to offer such facilities as banks.