As of July 1, 2019, the Baby Waiting Loan is a free-of-charge loan facility and does not require real estate collateral. Because the amount is freely usable, it can be a source of self-sufficiency for a home purchase. That is, Good Finance can buy an apartment with a loan of up to 0 HUF!
For real estate coverage, the loan can be up to 80% of the market value of the property you want to buy.
During the income test
The claimants must include a specified percentage of their verified net income in installments of all existing and proposed loans. The definition of loan repayment is limited by the rule. In the case of a home loan, the repayment installment may not be higher than 25% of the monthly net salary, below the income of 400 thousand HUF, and in case of income above 30%. And for mortgages with a fixed repayment period of five to ten years, the limits are 35% and 40%, respectively.
The 50 and 60% limits apply only to fixed mortgage loans for a minimum period of ten years or until the end of the term. As of July 1, 2019, the decree allows for a monthly income of HUF 500,000 instead of the current $ 400,000.
The loan agreement
The loan amount may not exceed HUF 10 million.
It will be disbursed in a lump sum following the conclusion of the loan agreement.
Repayment can only be in HUF.
The interest rate specified in the loan agreement shall not be higher than 130% of the arithmetic average of the average yields on 5-year government bond auctions held during the 3 months preceding the publication of the interest rate subsidy, plus 2 percentage points
The interest rate of the loan may change only every 5 years during the interest subsidy period.
The total duration of the loan may not exceed 20 years
Not including the duration of the interruption after the birth or adoption of the first child
The monthly amount of the repayment installment during the interest subsidy period, including the guarantee fee, may not exceed HUF 50,000.
The credit institution shall not charge fees or any other costs to the sponsored persons for early repayment.
In the event of default of the assisted persons, the credit institution shall, prior to the cancellation of the loan, require the assisted persons to apply the provisions of the Government Decree on the procedure for the preparation of State guarantees and for the redemption of guarantees.
More details on Baby Waiting Support HERE!