Since many are preparing to take out a home loan, every few months I ask the blog’s credit administrator, Gabor, to write a review of the available home loan interest rates.
It seems that interest rate hikes are still to come, despite the fact that rising inflation is almost certain to require the National Bank to begin a cycle of interest rate hikes. Next is Gábor’s article. (If you have any questions, ask her at the contact above.)
Ever since Nicholas ‘request on Good Finance’ mortgage loans, the point has been adamant: Goodbank Bank has offered the best interest rate on a mortgage for at least 10 years (and pledges at least $ 300,000 / $ 400,000 a month).
This situation seems to be worsening after the Bank’s latest interest rate hike. With a maturity of over 10 years, there are clearly more favorable offers on the market. Even if the loan has a maturity of 10 years, Goodbank Bank still has the best interest rate of 3.9%. However, considering the bank account costs and the prepayment fee, we can find cheaper financing options in this category as well.
In response to Goodbank Bank’s pricing decision
Several other financial institutions have decided that it is up to them and at this new level to participate in price competition. In February and March, four banks cut interest rates on their 10-year bids. Based on market rumors, it seems that the range of interest rate-reducing financial institutions will continue to grow.
In addition to Goodbank’s interest rate hike, the Hungarian National Bank may also recommend / require the swap of 3-month forint foreign currency loans to longer-term loans. In this regard, several financial institutions see the possibility of attracting customers from other banks or of having to keep their own loans. Both will require competitive conditions.
Intensive interest rate changes at the total banking level have tendency-like consequences that are worth going through in detail.
There are also financial institutions that are firmly resistant to all sorts of pressure to cut interest rates. Thus, although the maximum interest rate for qualifying consumer loans is defined, the range of available interest rates is quite broad. Currently, the best interest rate available for 10-year loans is 3.94%. However, there are also plenty of loan offers above 5%.
The difference between the 10-year FIX interest rate
(10-year maturity, 10-year fixed interest rate) and the most favorable 10-year interest rate bid rate has practically disappeared. Best available interest in 10 FIX schemes is 3.9%.
The interest rate differential between bids of 5 and 10 years has been reduced. The most favorable MFL 5-year interest rate is 3.46%.
The interest rate differential between 10-year and 11-20-year fixed rate bids has increased. The best 15 year FIX rate is 4.9%, the best 20 FIX bid is 5.29%.
The extra interest rebate that can be achieved by applying for more credit is reduced / eliminated. Based on my experience, credit offers will become more differentiated over time. By the time your campaign for the swap of former foreign currency loans for long-term loans expires.
Depending on the amount of credit applied for
Different interest rates are available for several financial institutions. Most banks have different interest rates on loans above and below $ 20M, but there are financial institutions that also have an interest rate step up to $ 10M.
To illustrate the above, let’s look at the best loan offers for the following interest periods, depending on your loan amount and credit: