Mortgage Loan for Property Purchase
Taking out a mortgage loan is a long-term commitment. To choose the best possible option, thorough research is essential. Since the loan market is constantly changing and banks continuously introduce new offers, it is easy to get lost among the many options.
The largest independent banking expert, Bankmonitor, is the official partner of Minősített Ingatlanok. We spoke with Balázs Sándorfi, the founder and CEO, who provided useful insights on the topic.
What Is a Mortgage Loan?
A mortgage loan is a type of loan where the collateral is one or more unencumbered properties. In practice, this means that if the borrower is unable to repay the loan, the house or apartment becomes the property of the bank, which can then sell it. For home loans, this is the only available structure (= real estate mortgage loan).
Since there is collateral, the bank takes on less risk. As a result, mortgage loans typically have lower interest rates than unsecured loans and can have longer repayment terms (up to 30 years).
Contrary to popular belief, mortgage loans are not limited to property purchases, construction, or renovation. There is also a type called a free-use mortgage loan, which can be used for any purpose. Its conditions are usually more favorable than those of traditional personal loans.
Mortgage Loan Conditions and the Application Process
The bank determines the maximum loan amount based on the property valuation. It is important to know that the loan-to-value ratio is generally 10-30% lower than the market value of the house or apartment!
Having the right property as collateral is not enough. The bank also checks if the borrower has a stable income. Typically, 3-6 months of employment history and proof of income are required.
If you earn less than 600,000 HUF per month, you can allocate a maximum of 50% of your income to loan repayments (above 600,000 HUF, this limit increases to 60%). This rule applies to loans with a fixed interest rate and a minimum term of 10 years.
"Existing loans also count towards the Debt-to-Income Ratio (DTI)!"
– warns Balázs Sándorfi, CEO of Bankmonitor.
The most important steps in applying for a loan are:
How to Get the Best Loan Deal?
The first step in applying for a loan is gathering objective information! Many people make the mistake of skipping this step and simply visiting their primary bank.
This is like looking for the best coffee deal but only trying one brand! If you want the best terms, you need to compare offers from multiple banks.
Approval criteria also vary. One bank may reject your application, while another may approve it without any issues.
A mortgage loan is a long-term commitment that will shape your financial situation for years or even decades. Monthly payments can differ by tens of thousands of forints, which adds up significantly over a 10+ year term.
Don't settle for the first offer! To get the best mortgage deal, compare different banks' products and evaluate available interest rates and discounts.
New, Free Mortgage Calculator
The Bankmonitor mortgage calculator is available for free on our website. This is a brand new tool designed specifically for minositettingatlanok.hu to ensure a smooth and fast application process. It includes key parameters, and after filling them in, users can instantly access bank offers.
Using the mortgage calculator allows you to research loans from home, saving time and effort without waiting in bank queues.
"In addition to monthly payments, you should also compare APRs."
- advises Balázs Sándorfi, CEO of Bankmonitor.
The APR (Annual Percentage Rate) is a percentage value that represents the total cost of the loan on an annual basis. It includes fees such as handling fees, contract fees, and disbursement charges. It is also important to check the total repayment amount and whether the loan has a fixed or variable interest rate.
Bankmonitor reviews and compares all major bank offers to recommend the best solution. Additionally, their advisors help explain the differences between various loans, ensuring that customers clearly understand which option best suits their financial situation and long-term plans.
Exclusive Bankmonitor Discounts
Those who apply for a mortgage loan through Bankmonitor automatically receive an interest rate discount, with no extra conditions.
Additional discounts may be available for specific commitments (e.g., fixed monthly deposits). Some banks also offer early repayment fee waivers, free prepayment options, and gift vouchers for loans obtained via Bankmonitor. These benefits can add up to millions of forints in savings for borrowers.
In addition to simplifying loan selection, Bankmonitor also provides real financial advantages!
Direct Support from Calculation to Contract Signing
If a loan is needed for a home purchase, the process can seem complicated for many. Even the first step—choosing the right mortgage loan—can be overwhelming, not to mention the complex and time-consuming administration.
Bankmonitor experts are readily available to assist customers. They provide access to nearly 100% of bank offers and offer discounts.
They save clients time, as a personal visit to the bank is only required for signing the contract. They clarify doubts, answer all questions related to borrowing, and handle the entire loan process for free.
Use the online mortgage calculator on our website and take advantage of the free assistance of the largest independent banking experts!
