In recent years, thanks to a fall in the central bank base rate and its low level, which is currently 0.9%, we have witnessed record low loan rates, which has greatly helped the housing market boom.
Credit interest rates have started to increase in recent months, but it still seems that this has not discouraged the population, as borrowing is still strong.
We were wondering if
This point in Germany, where the EUR loans were based on the ECB’s current base rate of 0% and a similar amount for a home purchase in Hungary, what would be the difference, and if so, how much? We don’t want to screw up anymore, we found a pretty startling difference.
One of the most popular Hungarian home loan comparison site, Sándor Nagy, the professional leader of www.hitel.hu , helped us in this research:
Calculated at the HUF 330 exchange rate
For comparison, we used www.financescout24.de , a property worth EUR 100,000 – which is approx. equals the price of an average apartment in Budapest – buying and setting a 5-year interest period, with a short repayment period calculated at 27% self-sufficiency.
In both cases, we counted on the most favorable product available on the websites.
Most strikingly, the German borrower pays only 35% of the total loan cost to the Hungarian during the term (HUF 2.48 million vs. HUF 7.1 million)! This costs the Hungarian borrower 2.8 times more.
The reason is simple
Because of the difference in the base rate and the higher expectation of bank profits, a looser regulatory environment, loans are more expensive than ours. When we join the eurozone, there may not be such a large difference in credit and a further decline in interest rates.
It is worth paying attention to and calculating on www.hitel.hu , or seeking the help of an expert credit broker, as the difference in this parameterization can be up to 10 Million HUF if we are not well informed and careful. They save us time, money and energy.