Today I have heard from one of the clients this interesting advice, suggested by a credit intermediary of a larger loan comparison portal. The point was that the existing NCC (total savings of 3.6M forints) would be money in three months, but in case of faster access it would cost 3% and this should be avoided…
Advice: buy more loans
The mediator suggested an interesting solution to the client. According to the proposal, you will receive more than HUF 3.6M of Qualified Consumer Friendly Loan, which you will be able to pay free of charge from NCC when it becomes available in three months.
It is worth knowing about the needs of the customer that you need an initial loan of 5M HUF, which you would pay back to the bank in 5 years. The roughly calculated monthly installment would be about HUF 91,000 a month with fixed interest.
Let the loan be 5 + 3.6 million forints
And then, on the basis of the proposal, the customer should buy HUF 8.6M for 5 years, with a fixed interest rate, of which HUF 3.6M will be prepaid free of charge in three months. This will save you the $ 108,000 cost of accelerating your NCC payment and get your money “faster”.
At first you would probably be sympathetic if you could save 108,000 forints. But let’s look better at what it is.
- Larger Credit = Higher Notarial Fee (approx. $ 30,000)
- The 3.6M forint loan should be repaid for at least two months, with a partial installer of approx. 60,000 HUF / month.
So, on the whole, our extra cost with this operation would be 30,000 + (minimum 2x 60,000) = 150,000 forints. And if we slip into the third repayment cycle for some reason, we’ll have to pay 60,000 HUF again.
And how much is the real loss?
Well, on the one hand, it is possible that the customer would have to spend a hundred thousand thousands before buying a home.
On the other hand, we can calculate, by annuity loan, how much of the 60,000 / month paid installment is “excessively paid interest”. Approximately 11,000 forints per month have to be calculated with interest paid in the first three months.
In addition to three months of extra repayment, our interest expense is approximately HUF 33-35,000.
Then do we win?
One side is the cost of 108,000 forints. The other side is worth 60-65,000 for the moment (in case of three monthly repayments). The potential gain in this case is approx. It can be 43-48,000 forints.
But it all depends on the particular credit structure. For example, most banks provide us with a number of discounts (valuation fees, disbursement fees, notary fees) that we have to repay in full if, for example, we prepay within x years.
The Small Lender can cover everything
I have now introduced a very special customer demand with a 5 year maturity. However, take into account that the Small Lender indicator (pay-as-you-go installment) can only be 35% for a 5-year interest rate loan, with a 400,000 HUF verifiable income.
If the family can pay 350,000 forints, the total loan repayment facility can be 122,500 forints. And existing credit cards, overdraft lines, commodities loans, student loans, personal loans, mortgage loans are included.
Therefore, this example does not work, because due to the extra credit for the 5-year term, the installment would be around 160,000 for 2-3 months.
Always sit down and think to speak to a competent professional before we start a process that we can’t come out of as a winner.
Look at how much a move into a new home will cost
I will help you with credit management. In the framework of your featured and free service, I also offer you several credit offers from several banks at the same time, which are valid for up to 6 months. You don’t have to fight at the branch! I’ll do everything for you with credit and give you an immediate solution to any problems that may arise in the meantime. Comfortable, fast, reliable.
You are guaranteed (much more comfortable) the same credit with us under the same conditions as you would go into the bank branch. Indeed! In many cases, I can provide you with unique discounts (free prepayment, free transfer… etc) that you will not get at the branch.