Many of my clients ask me what strategy should I take to borrow a loan? We have to choose from many constructs. In this article we look at a solution, the most important element of which is predictability and security. So in this example, we don’t want to trick you into interest periods, don’t want to defeat the bank, and don’t risk losing the terms (lower state support) that will cover the entire construction in 4 years, when we’ll recoup your home. We strive for the most stable solution in the traditional sense for conservative customers!
The most important findings of the credit strategy are the “0 forint” mortgage loan facility
1. First, the market loan must be repaid
In this construction, we will take on two types of credit. On the one hand, the “3%” interest rate CSOK loan, on the one hand, and a market loan, on the other hand, the interest rate of which is now 4.37% for a 10-year fixed rate construction. Since two loans run parallel to each other, we have to decide how we will work from the available financial framework:
- In parallel, we reduce the principal debt of both loans
- First we pay back the CSOK credit
- First, the market rate loan is settled
I’m not telling you a big secret that you always get the more expensive loan in cash as soon as possible. Thus, the basis of the entire construction is based on the primary repayment of the market loan.
2. First, we are thinking about a 10-year-old dwelling
The article is already on the blog, in which we analyze the ancient question: “Which one is better?” 4 years old or 10 years old to get a loan? ‘ I’ll tell you in advance that the answer is not so easy, because the EBKM value of the two modes would be pushed to one side by the other. In the introduction, I pointed out that the narrative of this design, to be guaranteed throughout , should not change the conditions. As the state’s plan to reduce support for housing savings contracts is becoming more common, the choice is clear: in this case, we are thinking about a 10-year period, thus guaranteeing the integrity of the design for ourselves.
3. The longer the term of the loan
Basically, customers want to repay their credit between 10-15 years. In this case, the most conservative solution is to take the credit for the 10-15 year term we pay. It may be a much better solution if certain conditions are met, if you take a loan on paper for a longer term, we minimize our monthly obligation to the bank.
For example, the repayment installment of a 10,000,000 forint market loan would be HUF 103,332 per month for 10 years at a fixed interest rate of 10 years. For 25 years, however, the same construction is HUF 55,215. The difference between the two amounts is our “playground”, that is, the amount that we can produce wisely in a flat savings by producing a higher yield than the interest on the loan. So it is in our interest to pay the bank as little as possible.
The purpose of the maturity shift is not to pay as little as possible to repay the loan, as the difference is also recycled into housing savings.
4. Starting the home savings a year soon
In this design, I want to present a very typical life situation. Since the condition of CSOK10 + 10 is the purchase or construction of a newly built apartment, it is precisely because of this that we face a certain time limit. After all, these properties are virtually unavailable right away. At least half a year to one year between paper and real estate. Obviously, it can take up to 1 year to start a loan repayment.
If we have chosen the right credit strategy, we can win hundreds of thousands and years by immediately launching housing savings and getting state support. With this step, we can, for example, repay the 10-year housing savings not in the 10th year of the loan, but in the 9th year of the loan, as savings have been ticking for a year already!
What do we get in the construction?
We do not need to pay 12x 55 215 HUF repayments (we have won one year) = + 662 580 fortune gain
In the figure we can see how the relationship between the two loans and the house cover changes. Thus, the first free prepayment is now 10 years (from the 9th anniversary of the loan) on the housing savings due. This means that the market loan will be fully paid and terminated. However, the amount accumulated from 3 pieces of 10-year-old housing savings will save us nearly HUF 1.5M, which we can use to prepay free CSOK 10M loan.
So 10 years from now (in the 9th year of loans) will be:
- market credit paid
- the current capital repayment of CSOK 10M forint is HUF 6,050,275
- We need to tie 3 pieces of 20 150 and 1 16 150 HUF for 4 years
After 13 years (from the 12th year of the loan), the ten-year renegotiated housing contract expires in 10 years, so everything is given to get out of this loan by paying the remaining principal debt of the CSOK10M forint. In this calculation, there is a difference of HUF 45,971 for the principal debt, which we pay in one amount.
How much have we paid in total?
From the table we can see that HUF 20,000,000 was repaid in 13 years (+1 year, when we pay only housing savings) for HUF 1,932,424. This is already a very good offer, thanks to the fact that we started saving sooner and used the available state support.
In the calculation
in the second apartment building construction we had to make 4 apartment savings, which is possible, because the CSOK 10 + 10 3 is for children, so in the paper form the small family has a minimum of 5 “free tax number”. However, we have to consider the design:
- the cost of signing a contract for a homeowner, which you can now make a special offer. In case of a 10-year contract, it would be HUF 76,000-80,000 per contract, ie about 240,000 forints. In turn, the three contracts would cost 60,000 forints. (here you can request action: ltp binding)
- The cost of opening a 4-year 4-year-old home savings due after 10 years is unknown, as it depends on the method and the discount. It would cost you about 100,000 forints at the moment.
- it is in the deck that in 10 years we will be able to make the house savings on other terms, so there will not be enough calculation for the final repayment
- In addition to all kinds of action, the cost of picking up such a loan can be around 50-100,000 forints + attorneys’ fees. So always pay attention to full repayment.
Extra construction: Full repayment can be further reduced, because there is a unique construction on the market where the money parked on your current account is equal to the interest rate on your loan. Here’s how it works (if you are a blog sponsor or you are getting it now. Support amount of $ 1-3 per month): A special credit facility