If we are in any case in need of a mobilizable sum of money, we do not necessarily want to receive it while offering our property as collateral.
Do not pass the bank into the ownership of the apartment
If you go to the bank for a loan, a free mortgage loan and a personal loan are two options.
Loans that require neither collateral nor collateral are simpler, easier to take out. What is still very attractive and guarantees security is a fixed rate loan, also known as a fixed loan. By choosing this solution we can avoid the increase in installments due to exchange rate fluctuations.
The mortgage is already carrying the name that we need to pledge, in order to ensure that the bank provides sufficient security for a property of significant value. The value of the property cannot be less than 5 million HUF, so a little weekend joke is not enough security.
Not everyone owns real estate
The advantage of this loan is that you can borrow a higher amount, but the disadvantage is that due to the time it takes to assess the collateral and other paperwork, it takes about one and a half months to arrange. Well, it gives the client little to do to prove their creditworthiness.
In the case of a personal loan, on the other hand, the procedure is shorter and we can be sure that all family-owned properties will remain intact. It is also possible that we do not have a house or home that can be used as a mortgage in a credit transaction. If, say, we live in a rented apartment but our income is high, then this is an opportunity for us.
Everyone is looking for affordable credit
The amount you can borrow is a little more limited than a personal loan, and you can get a loan of up to 7 million forints.
Today, the APR on bank loans is not double-digit, meaning that we can get a loan for realistic interest. We cannot get the installment exact from online calculators because it depends on our income and many other creditworthiness ratios.
The fact that we have to consider a higher start-up cost than a mortgage is overshadowed by the picture. Valuation, mortgage registration, title deed, notary fees are all borne by the client. Thus, arranging a personal loan is simpler, quicker and not costly.
Surprisingly, the best deals on installment payments for personal loans and free-to-use mortgages do not show a strong difference. However, the higher the loan amount, the more expensive the personal loan.