MNB is the Hungarian National Bank. It controls the regular operation of enterprises dealing with financial mediation, protects the interests of clients, decreases the danger of deception of customers. During the past years as a result of the economic crisis the following functions are high priority: the enforcement of responsible lending, assuring the transparency of the loan market for clients as well.
MNB registration is needed because of the protection of clients: the mediation of financial products is bound to an official exam, so dealing with financial services is only possible for those who are registered by MNB. In this way the expertise of the mediating financial consultant is assured.
According to the tax law, a new apartment is every residential property after the issuance of the occupancy permit until the first sale or in case the flat is bought by a real estate agency, until the second sale. In case of a purchase before the issuance of occupancy permits the apartment is free or discount of tax.
The available loan-amount depends on your monthly income, and on the value of the collateral property. The value of the property depends on the geographical location, and the sale potential. In the calculation of the loan-amount, the bank takes into account how much we spend for a living per month, if we have already have other loan repayments, and if we live alone in the household, etc.
During the recruitment of home loans, banks charge a cost for the administration and services during the administration (valuation, mortgage registration, etc.). However, several banking partners - as free of charge promotion - do not charge some costs and fees or reimburse them to the customers!
The main home loan related fees:
A grace period is that period, during that the debtor (the loan applicant) doesn’t pay the capital part of the loan but the interest rate of the loan only (and the administrative charge in certain banks or in case of certain loans). Practically the bank gives a delay for the repayment of the capital, so during the grace period the amount of the monthly installment is lower.
The financial institutions don't accept every type of income, they define those income categories, which can be accepted independently, that means as primary or additional, that means as a secondary income.
Primary acceptable incomes: wages by employees; monthly income proven by income statement issued by the National Tax Office in cases of entrepreneurs; pension, or finalized disability pension. Among the primary income listing fee, scholarship, honorarium, education allowance, life annuity, etc. can be classified.
Additional incomes: child benefit, child care, maternity leave, child support, maternity allowance, income from real estate rental.
The period of grace is the period during which the debtor (the borrower) does not do repayments of principal, only the interest (and in case of some banks and loans, there is the handling fee to be paid). In this way, the bank gives moratorium for the payment of the principal, so during the period of grace the monthly repayment is lower.
The exchange rate risk is a risk generated by the changes of the different currencies. In practice, this means if you take a loan in Euro, the bank register amount of your loan in Euro and the mortgages are registered in Euro, in every month. As the Hungarian wages are typically paid in HUF (Hungarian Forint), you will repay the debt in HUF as well. If the Euro strengthens, you pay less per month because the monthly payment defined in Euro will be lower in Hungarian Forint, and if the Euro weakens, the amount of HUF payment will be higher.
The interest period shows the frequency of the loan interest modification. Over one interest period, the interest rate is unchanged. Thus, in a six-month interest period, the level of interest is the same in the first 6 months; however in the next 6 months the interest rate may decrease or increase.
Banks require home care insurance for the collateral property in case of mortgage loans, as this property is the guarantee for the loan. The property you buy is not necessarily the property offered as collateral, so it is not mandatory to have insurance. In this case, however, it is worth considering the home care insurance, as damage can occur at any time (burglary, breaking windows, fire, etc.)
Yes. In this case the property is mortgaged, so it is necessary to remove the mortgage. This can be done by the seller or the buyer. If the seller is able to settle his loan, and repays the debt, the seller's bank can remove the mortgage and so the property clear of encumbrances can be purchased. If the seller is able to offer another property as a guarantee (which the bank accept); so also through the change of collateral the property can be cleared from encumbrances.
According to the agreement between the seller and the buyer, the buyer can remove encumbrances of the property. In such cases, as stated in the contract of sale the buyer can pay the seller's loan by himself or another loan. In the latter case, the seller's creditor bank settles the seller's loan in base of the buyer's bank certificate, and so the seller's bank issues a permit which is necessary to delete a mortgage on the property.
We can read both notions in bank loan contracts and property ownership card. The prohibition of alienation and encumbrance is to restrict of the rights of real estate property: the property cannot be sold or freely loaded, or offered as collateral. Both restrictions are registered on the property to protect the mortgage right of the bank.
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I would like to thank real estate agent Sándor Szabó working for the Jaszberény office of the Duna House franchise network for his conscientious and helpful work provided during the sales of my apartment. With his high-standard expertise he organised viewings of my apartment rapidly, informed clients fully, as a result of which it was sold within a short time.
— Károly, Jászberény