In 2016, we borrowed approximately 30% more home loans than a year earlier and, according to experts, this growth, if not to a large extent, may continue due to the boom in the housing market and changes in the CSOK. E-Money’s Sales Director shared some ideas on what responsible lending looks like in practice, as borrowing a home, especially for clients, can be a decades-long commitment.
How have home loans increased in recent years, and how has E-Money market share developed?
A HUF 397 billion home loan was disbursed in Hungary in the first 10 months of 2016, an increase of approximately 31 percent compared to the same period of 2015. E-Money Bank received 15-20% of this volume, so it is a fairly active player.
What can be experienced in the field of bank deposits?
Many clients have chosen to pay off some or all of their home mortgages early on, due to the low interest rate environment, and may use their savings to invest in real estate. Many have done this by using all or part of their investments and deposits. However, we do not see a significant shift when looking at investment funds or deposits as a whole, as there is a normal willingness to save.
Customers who choose a variable rate or fixed rate loan?
Our experience remains that more than two thirds of customers opt for one-year mortgages. Although nowadays mortgages below 3% annual interest rate are available, those who wish to know the repayment details for a longer period of time can also get a 3 or 5 year fixed rate loan.
What documents do I need and how long does it take to get a home loan?
At E-Money Bank this is done as follows:
First, expert colleagues explore the customer’s needs and opportunities in a 20-25 minute conversation. In this phase, the following questions are sought.
- the customer’s residential purpose
- current life situation
- income situation
- financial opportunity
- other current expenditure
- other loan repayment obligations
- real estate conditions
- possible State aid
So, for the first time, no special document is needed, or even faster, if an interested person answers these questions on the bank’s website so that a bank colleague is ready to call at the best time specified by the customer.
Banks provide about the interest rate risk of floating rate loans?
They calculate multiple versions for their clients on both variable rate and fixed rate loans, but it is up to them, the clients, to make the final decision.
And this part of the whole process is the most delusional, because later on this is the basis for banks to say that once you sign a contract, you have to take the initiative if the economic or even the global economic environment is not changing the way Was painted in the period of the “girl request.”
Therefore, if you are thinking of building or buying a home and want more detailed information on the terms of using CSOK 2017 or 5% VAT, and if you are thinking of buying a home loan and negotiating with banks as an equal partner, details, contact Aramis credit brokerage!