Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Several Banks Now Offering Mortgage Loans with Just 10% Down Payment

In a major development for potential homebuyers, several Hungarian banks have adjusted their lending practices to offer mortgage loans with as little as 10% down payment.
This move, now available at five major financial institutions including OTP, Erste, K&H, CIB, and UniCredit, marks a significant shift from the traditional 20% minimum down payment requirement, making home ownership more accessible for many, especially young buyers meeting specific legal requirements, reports Bankmonitor.

This opportunity significantly aids purchasers who find the standard 20% down payment a major hurdle. For instance, buying a property worth 80 million forints traditionally requires a 16 million forint down payment. However, with the 10% option, this amount is halved to 8 million forints. To put it another way, for a property valued at 80 million forints, banks would lend up to 64 million forints at the 20% down payment threshold, compared to 72 million forints with a 10% down payment.

Initially available at OTP, Erste, and K&H Bank, this option was later joined by CIB and UniCredit. This expansion is particularly beneficial for loan applicants, as the lending practices and evaluations can vary significantly across different banks. Some applicants might find it easier to secure a loan with one bank over another due to how various income sources, like foreign, cash, or entrepreneurial incomes, are treated or differences in the minimum income requirements and contractual conditions.

Bankmonitor experts advise those interested in this financing option to thoroughly research as conditions differ among banks. While some banks offer the 10% down payment option across all residential mortgage products, others may limit it to specific loan types such as CSOK Plusz or market-rate mortgages taken alongside CSOK Plusz loans. Additionally, while some cap the market value of properties eligible under this scheme at 80 million forints, others impose no such limit.

However, it's important to note that the 90% loan-to-value ratio doesn't always mean that banks will lend up to 90% of a property's market value. This is because the loan amount can't exceed the bank-determined loan-to-value (LTV) ratio, which is often lower than the market value. For example, if a property's market value is 80 million forints and the bank calculates the LTV at 15% less, the maximum loan amount would be 68 million forints. In this scenario, a minimum of 12 million forints of down payment is required, which is 15% of the purchasing price, still more favorable than the 20% minimum, which would demand 16 million forints of personal funds for the purchase.

Eligibility for the 10% down payment mortgage loan includes conditions such as neither the borrower nor co-borrower being over 40 years of age at the time of the loan application, and neither having previously owned a 50% or more share in residential property. Exceptions are made for property ownership acquired through inheritance or other legal means where use rights are established by law.
Newsletter

Related Articles

0:00
0:00
Close
ICC Seeks Arrest Warrants for Israeli and Hamas Leaders
Julian Assange Faces US Extradition: Key Facts
Jacob Zuma Takes Campaign to ANC Stronghold Soweto
Attempted Assassination of Slovakia PM Robert Fico: Investigation Ongoing
Top Tory MP Raises Concerns Over Government Green Targets
Keir Starmer’s Six Key Promises Evaluated
Slovakia Faces Political and Social Turmoil
France Riles Allies by Inviting Russia to D-Day Ceremony
Poland to Spend €2.3 Billion to Reinforce Border with Russia and Belarus
Poland Supports Rolls-Royce's Nuclear Power Plant Initiative
European Ports Overflow with Unsold Electric Vehicles
Esprit Files for Bankruptcy in Europe, Putting Hundreds of Jobs at Risk
Tesla Receives Approval for German Plant Expansion
Slovakian Prime Minister Robert Fico is in life-threatening condition after being shot multiple times
Xi Jinping Highlights Europe's Divisions Ahead of Putin Visit
German Court Rules AfD Can Be Monitored for Extremism
Xi Jinping Highlights Europe's Divisions Ahead of Putin Visit
UN General Assembly Approves Palestinian Membership Bid
Teens Forming Friendships with AI Chatbots
WhatsApp Rolls Out Major Redesign
Neuralink's First Brain Implant Experiences Issue
Apple Unveils New iPad Pro with M4 Chip, Misleading AI Claims
OpenAI to Announce Google Search Competitor
Apple Apologizes for Controversial iPad Pro Ad Featuring Instrument Destruction
Boeing 737 Catches Fire in Senegal, 10 Injured
Cruise Ship Arrives in NYC with Dead 44-Foot Whale on Bow
Trump lawyer questions Stormy Daniels' account of sex with Trump
Hunter Biden's Gun Charges Upheld, Trial Set for June
Last Indian soldiers leave Maldives
Espionage Scandal in Poland: Listening Devices Found Before Government Meeting
Apple Faces Significant Sales Decline Amid AI Integration Delay
Netanyahu's Firm Stance Amid Rafah Hostage Talks
New UK Laws: Banning Weak Passwords for Internet-Connected Devices to Enhance Cybersecurity
Spanish Prime Minister May Announce Resignation
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Orban: Destroy Liberal World Order - Predicts End This Year
Diplomatic Tensions: Sunak Clashes with Macron Over Rwanda Plan
A Jewish woman was kidnapped and raped in Gennevilliers (a suburb in western Paris), France, on the background of hatred for Israel
Russia: Deputy Defense Minister Arrested on Suspicion of Taking Bribes
Stanford Researchers Discover Child Abuse Material in AI Image Generator Dataset: Can Regulations Prevent Explicit Deepfakes of Children?
Record-Breaking 'Extreme Heat Stress' Days in Europe's Contrasting 2023 Summer: A Health Threat
Thousands Evacuated: 1,000-Kg NATO Bomb Removed from Serbian City
European Car Sales Drop 5.2% in March: Electric Vehicles Face Challenges Amidst Market Downturn and High Prices
Urgent Call from William Burns as Kyiv Braces for Russian Summer Offensive.
IMF Boosts Russia's 2024 Economic Growth Forecast to 3.2%
BOEING WHISTLEBLOWER: THE MAX AIRPLANE IS NOT SAFE!!!
Creative menu of a Pizza restaurant..
The communists couldn’t ban us and neither could the Brussels bureaucrats. The second day of the NatCon Talk conference is underway.
You can be a very successful player, but a player with character is another level!
×