Debt brake regulations changed!

It is important to know that according to the Good Finance’s debt brake rule, since October 1 last year, credit institutions must not only take into account the repayment installment determined at the time of the borrowing, but also the banks’ potential increase. Credit institutions apply stricter rules when applying for long-term and therefore variable-rate home loans.

Home loans have been taken out with an interest rate

Home loans have been taken out with an interest rate

As a result of the new regulation, more than 90% of home loans have been taken out with an interest rate of at least 5 years.

The Income-to-Pay-Out Indicator (POI) sets the following criteria for the debit of a claimant’s combined income if it is less than $ 500,000 :

  • if the interest period of the requested home loan is less than 5 years, the loan repayment installment may not exceed 25% of the net income,
  • if the interest rate applied for the home loan applied for is 5 years or more but less than 10 years, the installment of the loans may not be higher than 35% of the net income,
  • if the interest rate of the requested home loan has a fixed interest rate of 10 years or all, the loan repayment installment may not be higher than 50% of net income.

If the net income of claimants is more than 500 thousand HUF , then:

  • if the interest period of the requested home loan is less than 5 years, the loan repayment installment may not be higher than 30% of the net income,
  • if the interest rate applied for the home loan applied for is 5 years or more but less than 10 years, the loan repayment installment may not be higher than 40% of net income,
  • if the interest rate of the requested home loan is 10 years or fixed rate, the loan repayment installment may not be higher than 60% of the net income.

Apply stricter conditions in their internal regulations

money         

The previous regulation, which changed on July 1, allowed higher percentages even above HUF 400,000. However, it is worth noting that credit institutions have income limits set out in the regulations, which means they can apply stricter conditions in their internal regulations.

Home loan construction

Home loan construction

If you would like to know the terms and conditions of each credit institution providing their home loan construction, what state support is available to (Baby Waiting Support, Extended GFI). Please fill out our form and our credit broker will be looking for you!