I quote from an inquiring question: “I would like a $ 25 million flat to shop. I wonder if there is a realistic chance for me if my conditions are:
So far we have looked at the conditions of the interested person, then we await the answer of the expert
The loan is subject to the following conditions, which are generally expected from a borrower.
- Have a permanent registered flat in Hungary
- Have a monthly income acceptable to the credit institution for the applicant
- Be in possession of the appropriate own funds prescribed by the bank
- Have a valid tax card
These four conditions are a basic requirement
It is assumed that our inquirer will have a permanent home address and tax identification number in Hungary because of his home savings, even though his workplace is not located in Hungary.
In the absence of a valid home address card, and in the absence of proof of utility payments, banks will not grant credit, and without a tax card it is impossible to open a home savings account.
There is not enough information on the nature of working abroad and the type of income we do not know. This greatly affects the borrower’s ability to borrow.
In general, we can observe that for any home loan, the 3 and 6 months employment relationship is even more mandatory when working abroad.
An open-ended employment contract is also required
Which proves stability in the workplace. Proof of income is also not negligible, as failure to provide proof can also result in rejection.
Needed by a foreign worker yet
- foreign employment contract,
- the employer’s certificate,
- the bank may also request a statement of the bank account for the past 3-6 months from the bank holding the account.
- the home bank expects that some of the foreign income will go to the bank account it maintains.
- Banks can now accept English, German documents, if not, they can be translated at extra cost!
- for example, the creditor bank may apply for a certificate of income issued by a foreign tax authority.
- it can also be a cost to convert euro items into forint.
Credit institutions generally disburse up to 80% of the value of the property, which in our case results in a $ 5 million deductible in borrowing and, at best, can borrow only $ 20 million.
Practice shows that a loan repayer can make up 35-40% of our income
In our case, the repayment of the loan can be very favorable due to the HUF 600,000 income, between HUF 210 and 240 thousand, which already provides sufficient cover for the requested loan amount.
According to calculators, a home loan of HUF 20 million is the lowest APR of 2.26% for 20 years with the cheapest loan with a half-year interest rate, and it can be repaid with a monthly repayment of HUF 102.5 thousand.
It is advisable to choose among loans fixed for several years because of the risk. For example, in the case of a 5-10 year fixed interest rate, it is 3.55-4.75%, which represents a monthly repayment obligation of HUF 116-128.000.