Key features of financing

General

• Minimum mortgage application of HUF 5,000,000

• Variable mortgage repayment period between 5 and 25 years.

• Mortgage term has to ensure that the mortgage is repaid in full by the time the applicant reaches 68.

• The mortgage application is based on the price contained in the ‘Sales Agreement’ (contract). In certain circumstances an independent consultant may be appointed, if requested, but an extra fee of HUF 38,000 is charged for this additional service.

• Depending on the income level of the borrower, up to 50 % of the real estate can be financed by mortgage.

Charges and Interest Rates

• The cost of credit brokerage amounts to 2.0 % of the mortgage amount, the minimum fee being ~ HUF 100,000.

• Bank fees are generally 1.5 %, or in the case of a special offer 0 %.

• Fees of the Notary Public amount to ~ HUF 40,000, or in the case of a special offer the Bank will pay such fees.

• Interest rate at this moment is 5.69 % - borrowing in foreign currency (Swiss franc or €), paid out in Hungarian Forints.

• Interest rates are changeable but once agreed are fixed for the life of the mortgage.

• Rate of exchange is calculated according to daily rates at the date of the mortgage funds being released from the lender.

Documents & personal data

• Proof of residency 3 items please: Your latest council tax invoice; Your latest electricity invoice; Your water invoice, only one required

• A letter from the financial director of the company you work for stating that your employment is full time and confirming your salary and that you are not on a probationary term of employment.

• Certificate of income issued by the employer (alternatively, photocopies of statement of accounts for the last 3 months, where the salary/wage payments are shown, will be accepted as well).

• National Insurance number or paper from Tax office with this on it.

• Photocopy of a piece of identification which shows a photograph and current residential address.

• The borrower will have to attend the issuing Bank for purpose of personal identification

If all necessary documents have been presented, release of mortgage funds can be expected within 3 weeks. However, before this can happen, the Mortgage documents must be signed in the presence of a Notary Public selected by the Bank in Hungary and the mortgage lien against the property must be registered at the Land Registry.

N.B.
All information provided here is accurate, according to our best knowledge; however, no responsibility is taken for the correctness of such information, and it is the documents and information supplied by the Bank issuing the mortgage that are executed before the Notary Public that are binding.

For more information or advice please contact by email or telephone