Today, we meet a diverse range of home loans, whether banking or banking we would like to take a home saving loan. The choice is difficult as every credit institution offers favorable constructions.
One of the most important decisions in life is taking out a home loan, so it is very important to be able to make a clear, forward-looking decision, and our individual life situation is also a major factor in this.
Let’s examine which is the most favorable, LTP or bank home loan offer. The most popular credit institution offering LTP is Lundmenta.
Banks’ housing loan interest rates have been better so far
But Lundmenta has also improved its offer with changes at the end of 2017. The interest rate on apartment savings has dropped to 3.5%!
We know that Home Savings Interest is fixed to the end of the term, so you know the amount of interest you will have to pay on the loan. With the advent of consumer-friendly home loans, banks have been offering more and more fixed mortgage schemes over the past year, as they provide fixed interest rate protection against interest rate risk.
Home savings funds give you a chance to get a loan at maturity when you sign the contract. This loan is equal to the amount determined by the home savings for the particular facility.
There is also a special option provided by LTP, called the BRIDGE loan.
- this can be helpful for those who purchase the property sooner, as they can pre-pay the full amount of the contract before the savings expires, or at the time the contract is concluded.
- Here the maturity consists of two parts:
- from the bridging loan section (includes interest on the savings and loan amount, this option does not reduce the debt, but can be canceled at the end of the LTP with a 30% subsidy) The interest is 5.9%.
- and the home loan phase, which is judged to be a new loan and capital and interest will be paid. This part has an interest rate of 3.5%
The amount of credit that can be taken depends on the LTP. Increasing the number of contracts we have with our family members can increase both the contractual and loan amounts. The maturity is also regulated by the LTP mode.
For comparison, we examined a 10 million forints 10-year home loan based on the two options (LTP and Bank loan).
Home Savings: We have to contract 3 of them for 60.000 HUF
In the case of a bank home loan, it is very clear, since the principal debt decreases all the time, and the repayment installment is the same, ie HUF 96.6 thousand.
For the bridge loan, we will pay the home savings and interest of the 10 million loan amount, which is HUF 100,000 / month for 64 months. This decreases first when LTP is rolled out (4 million). At this point, after the remaining HUF 6 million of debt, the repayment will be HUF 105 thousand / month.
Overall, the APR on the bridging loan comes to 5.43%, which is less favorable than the APR for the most favorable 10-year home loan.
bank home loans beat the LTP bridging loan combination
On average, we need to spend less on home loan repayments, but because of the changes in our life situation, we can also decide on LTP!
Getting to know your home savings is a must when borrowing! Because of their APR, maturity, operation, related options and the variety of repayments it is important to know them individually!
Making big decisions is also about taking out a home loan, you need to take a thoughtful step as you will find 101 loan options from 14 banks!
Compare your options and ask our qualified credit brokers to help you find home loans who will provide you with professional advice to help you make this difficult decision for many years to come!
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