For the first time in a long time, mortgage rates are getting higher!

The long-standing low consumer-friendly home loan interest rates moved in June, with some banks raising yields, raising lending rates. Worst case scenario, we predict who is now borrowing up to 6% more per month. Here are a few cases that will tell you which is a fixed loan that stands out from the rest in pricing.

Just a week ago, we reported that government bond yields outperformed consumer-friendly loans with a steady rise in yields, as there has been no change in the best home loan yields so far

Banks with the best loans in their category did not increase their income by raising interest rates, but rather by lowering their spreads. And there were exceptions.

Low interest rates and thus low repayment rates were very popular among loan applicants.

Low interest rates and thus low repayment rates were very popular among loan applicants.

Even then, it seemed that banks could not hold on to this strategy for a long time, as interest rates were definitely expected to increase, as we have repeatedly stated, but the exact timing was uncertain. No one predicted when this would be due.

Well, the answer has come, according to June data, several banks have raised their lending rates compared to the previous month.

The offerings show that half of consumer-friendly loans have raised initial interest rates

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According to the analysis of financial experts:

  • 3-year interest rate: 0.02-0.10% for government securities + 0.30%
  • 5 year interest rate: 0.32-0.40% for government securities + 0.40%
  • 10 year interest rate: 0.25-0.64% for government securities + 0.64%
  • fixed rate loan: 0.53% for government securities + 0.53%.

If we take a $ 10 million loan, the monthly repayment will be as follows. The raises are shown.

  • 3 year interest period: 100-500 HUF
  • 5 year interest period: 1,700-2,100 HUF
  • 10 year interest period: HUF 1,400- 3,500
  • fixed rate loan: HUF 3,100.

If you look at it for a while, it’s not that much, or not much.

If we look at the initial repayment values ​​one month ago, in the worst case, our initial installment will increase by 4% and 6% respectively.

Nothing guarantees us that banks will stop raising interest rates, because only half of the banks have decided to raise interest rates. We could trust that this is only a temporary change, but in the current financial situation it is very likely that a sustained rise in interest rates is expected.

The benefits of a consumer-friendly qualifying home loan remain significant

The benefits of a consumer-friendly qualifying home loan remain significant

These loans can be obtained with significantly better initial interest rates in the market, and their benefit is unquestionable.

With a good choice, we can earn up to HUF 1 million over a 20-year term, which is a significant benefit over consumer credit on the market for consumer-friendly home loans.

“In terms of maturities, we believe that, on average, loans with a 10-year interest rate are the cheapest compared to the interest rate base. When we look at the average of the categories, banks add a 2.2-2.5% premium to the interest rate base, but the average premium over the 10-year interest rate is 1.9%, ”said our independent financial analyst.

This is something worth considering before you start borrowing because it looks very favorable.

The usability of home loans is favorable, as consumer-friendly home loans are not only for home purchase but, contrary to its name, can be used by customers for a variety of home uses, such as home loans. it can also be used for building land, buying a home, buying a home, or even replacing your existing home loans so far!

Today we can say that the best loans in their category are consumer loans

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If you are interested in finding out more about consumer-friendly credit, details about GFIC and taking out a home loan on favorable terms, contact our credit brokerage experts who will provide you with free professional loan information!

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