Unicredit has definitely launched a 10-year fixed-rate home loan in a pricing yesterday. It has an interest rate of 4.99%, which, together with the 10-year fix, makes it very attractive. At this price, you may even want to consider replacing your existing loan if you have no opportunity to pay it off early.
Why you should fix your loans for the long term
I’ve already written here: Time to fix your interest. Why review your loan from time to time? Article about: Swap your existing loan. Paying off your loan is the best investment)
As there have been many changes in the mortgage market lately, I asked my old colleague to write a few lines about the current situation. You got the chance because you think this is where your best customers come from. ?
So let her write. However, before that, outside of the new product, I would like to draw your attention to an old opportunity that is mentioned in the article. Before you start searching for a home, you can apply for a credit review, where the bank will tell you the maximum amount of credit you can get for your home. This review is valid for six months. It’s better to start looking for a home when you know what to expect than to face the risk of not getting a loan after paying your deposit.
I almost forgot: so if you need a well-prepared and versatile credit broker, you know where to click: www.olcsohitelek.com ?
Well, here we are, then his writing
The central bank base rate fell again after 8 months on March 25, and there is a strong chance of further interest rate cuts. The market has priced this in advance, and 12 months BUBOR is lower than 3 months. (According to a member of the Monetary Council, “there is still room for a further reduction in the central bank base rate … this has to be done very carefully because the Hungarian economy is small and open.”)
As a result, the interest rate spread between fixed-term mortgage loans with a maturity of less than 12 years and fixed-term mortgages increased further. The pricing of the latter is not influenced by short-term source cost developments.
Those who need to keep their loan installments unchanged and / or expect a rise in the central bank base rate in the medium to long term will have to pay significantly more in the first year (s).
Let’s look specifically
Current Best Short Term Interest Rate 6 Months BUBOR + 1.5 Currently – 3.36%
This interest can only be achieved with a loan amount above HUF 15 million and a minimum income of HUF 400,000 to a bank account.
However, a 12 month BUBOR + 2.25% – 2.85% pricing (4.09 – 4.69%) is already available to a wide range of loan applicants.
For a $ 10 million term with a 20-year maturity, it’s a $ 61073 to $ 64295 installment,
10 million forints with a maturity of 15 years means a repayment installment of 74421 – 77474 Ft,
In the case of HUF 10 million and 10 years maturity, this amounts to HUF 101944 – HUF 104,803
Regarding fixed rate offers:
20 years: 6.99% at $ 259 / month
15 years: 6.49% $ 259 / month
Will the premium paid in the early stages of the term be recovered in the future? Or is it better to choose the lowest interest rate offer available and try to repay the loan as soon as possible? How much and when will the reference interest rate rise?
For many, the choice between long and shorter interest rate alternatives may be made easier by today’s news:
UniCredit Bank has come out with a 10-year, up to 4.99% mortgage loan and credit swap offer. (for free use 5.99%)
HUF 10 million loan for 10 years at a fixed interest rate of HUF 106,017
Even with this 5-year interest period, only one bank has a more favorable home loan offer and can only be obtained with a separate CEO license.