No matter how much we hear about taking a loan carefully, unfortunately, they still make the mistake of getting paid by one of the banks, so they take out a loan there. This is not to say that this may not be a good solution, but it is unnecessary to risk a 10-20 to 30 year financial commitment. You should not treat a borrowing as a big purchase, because you have to be careful here because it is in your self-interest.
Remember the Swift franc loans?
In the 2000s it was very popular that people did not choose forint-based credit. The reason is very simple, the monthly installment was lower. While many have tried to say that there is an extra risk that can not come with forint loans, not many people have listened to the smart word. This risk was currency risk.
To put it simply, our income was in forints, but our debt was recorded in Swift francs. Let’s count a bit! Typically, one Swift franc was worth 149 forints when most of them took out their foreign currency loans.
Let’s say we raised $ 10 million , which is converted to CHF 67,114. As long as the exchange rate does not move very well, there is no problem with it. Yes, but the exchange rate jumped up to 256 forints. Thus, the amount of the CHF 67,114, that is, the amount of the loan we borrowed was no longer HUF 10 million but HUF 17,181,208. This difference is staggering even after so many years. More than that, nothing warns us about making the most careful choices.
Let’s start with the basics
Even if it seems like a big exaggeration, consider this question as if it were a gamble. And we have to figure out who will win.
Currently there are more than 30 banks operating in Hungary. Of course, not everyone can give us a competitive offer, but just for the sake of numbers, this means that we have a 1 in 32 chance of keeping a bank account (or intending to borrow) at the bank that is best for us. In percentage terms, this is exactly 3.125%. If you have enough chances then you should not read this article, but if you want to increase your chances, keep with us!
Use the calculator on the credit
The easiest way to increase your odds of just over 3% is to compare the offers of as many banks as possible. We would also like to offer you a very good heart by clicking here and counting . Here’s what we’ll do next.
Let’s count on a 20-year $ 15 million loan. According to the calculator, at present the best offer is about 75,386 HUF / month. In contrast, the bank charges us $ 103,267 per month for the least favorable loan. In our opinion, nobody is willing to give up about ’28 thousand forints on a monthly basis.
Even more interesting are these numbers when you look at the difference during the entire loan repayment period. In the first case, we will refund you $ 18,292,854 to the $ 15 million withdrawn. Now hold on to it or in the other case $ 25,033,080. The difference is no less than almost half of our borrowed amount, which is close to HUF 7 million.
This is just the beginning
So far, we have come to the conclusion that we have calculated how important it is to pay attention to where we can borrow for our property. Follow us in the future! Contact us if you need more information sooner ! To the best of our knowledge, we will help after we call you back.