Loan or lease?

Depending on your possibilities in relation of excess and bank approved income, the acquisition of the new flat can be done using a loan or leasing.

 


Loan

We generally recommend the financing of a property acquisition with loan to those who prefer to take a loan with no currency risk in HUF, and for whom the ownership of the new property is important.

Advantages of the loan:

  • In case of a loan, by including a second property, even the entire price can be covered.
  • The property to be purchased can be a security, as well as the maximum of 3 properties in Hungary if needed. (Anyone can offer their property as a security, since there is no restriction on the ownership of the property as a security).
  • The necessary amount of the own contribution depends on the value of the property to be purchased and the financial background of applicants.
  • Loan term can be as long as 35 years, which means the monthly instalments can be significantly decreased.
  • Together with a home savings agreement, the monthly instalments can also be significantly decreased.
  • Minimal wage is acceptable with the application
  • Option to fix the interest rate and the sum of installments for up to 20 years, resulting in a well-planned loan.
  • When requiring a grace period, even the first 10 years can result in significantly lower instalments.

Any Question lefts? Contact us!

Leasing

Leasing can be used for financing the purchase price of a used and a newly-built property as well.

 

A property leasing is basically the “buying of the property renting right”. It means that the buyer, i.e. the lessee leases (rents) the property from the seller, i.e. the lessor. The lessee gains ownership of the property following the expiry of the lease term. Thus, property leasing basically means the buying of the renting right of the property – still, it is more favorable than being a tenant, since following the expiry of the leasing term the lessee gains ownership of the property.

 

The leasing company buys the given property from the owner via a regular sale and purchase contract, and leases it to the loan applicant (=lessee) with a so-called leasing agreement. Despite the ownership connected to the expiry of the leasing term, in practice, the lessee is considered the owner, having all the rights and responsibilities of a property owner.

 

Advantages of leasing:

  • When someone is not qualified for state subsidy (such as the “CSOK” or interest rate subsidy), property leasing can be less expensive than a similar condition loan.
  • There is no monthly or non-recurring handling fee.
  • There is no maximum financing value.
  • EUR based financing is possible.
  • Property under construction can also be financed.
  • Early repayment and final payoff possible.
  • Residual value option offers even lower instalments (residual value is the defined part of the purchase price, which is not part of the own contribution or the financed amount. It can provide lower instalments, and higher maximum value of financing)
  • Minimal financed value: HUF net 5 Million, in case of newly-built property
  • Lease term can be as long as 25 years, but minimum of 5 years.
  • Although there is an age limit for property leasing (75 years, meaning the leasing term must expire before the lessee turns 75 years), a leasing inheritor can be appointed.

Any Question lefts? Contact us! 


Have a question? Do not hesitate to turn to us or look for our nearest office!

Ask for a call back or contact us here:

06 1 555 2222

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Our clients said

We are more than satisfied with the work of your colleague, Huszárné Palotás Erika (Szeged) and the service given by her. In Erika we have got to know a real “Duna House fairy” during the sales process of the two properties owned by our family. Therefore we have also decided to entrust your company with the sales of a more valuable property.

— Diána Szabadi, Szeged

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