Hungarian banks have been offering fixed rate home loans for 20 years
Starting August 25th, you can apply for a Kederoltas Dereforts Home Loan at Nerdortesos Credit Bank for a term of 15 or 20 years at a fixed interest rate of 7.42%, which is 0.5% lower for active clients. Is it worth choosing security today and paying upwards of several thousand forints?
As we have written several times, it is worth preparing for interest rate increases. This will also affect benchmarked home loans. And if interest runs out, you may want to make fixed rate plans. Yesterday, Nerdortesos Credit’s longest-term, all-time-fixed home loan debuted, and in addition, you may receive multiple discounts for those who require this home loan.
The Bank does not charge the unauthorized property certificate and map copy requested from the Takarnet system for the Kederoltas Dereforts Home Loan, and refunds the security valuation fee and the notary fee. According to the announcement, the APR for a 20-year HUF 5 million loan is 7.72%.
More expensive than other loans
The interest rate on a 5-year market rate mortgage on Nerdortesos Credit is 6.84%, but you can obtain loans with shorter term interest rates than other banks. This one percent difference in interest rate spreads can mean a difference of up to ten thousand forints in the initial installments, so it’s worth considering. Especially with such a time span.
How to protect yourself from rising interest rates?
In addition to fixed loans, there are several ways to protect against rising interest rates. For example, you might want to set it aside in an apartment savings and then retrieve the savings you have accumulated there. In addition, you may receive multiple discounts for those who require this home loan. Plus, after years of savings, we get a more favorable fixed home loan, which can be used to replace most of our home loan.