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Buying a car is part of many people’s dreams to fulfill. There are some who choose to buy a new car after years of savings , while others take advantage of the promotions in force by the banks to opt for a vehicle loan and obtain the vehicle before to pay it later.

If you are thinking of buying your new car , find out if some type of loan or credit or savings is your best option.

Purchase financed

In Peru this is the least popular modality for those looking to buy a new car. Most people prefer to pay a car in cash. This type of payment for a new vehicle is ideal for those who do not have the total value of the car they wish to purchase.

To buy a financed car, it is preferable to evaluate some whose quotas do not affect the monthly budget of the buyer in order to avoid payment problems and indebtedness. When choosing financing it is always better to choose the financial institution that charges the lowest annual interest rate.

Cash

The favorite mode of buyers of a new car is cash. This, according to experts in financial education is not the most advisable and it should be taken into account that a car is a good whose value is depreciated. This means that when a new car leaves the store it loses 20% of its initial value .

Experts recommend that you prefer to make a purchase with a vehicle credit taking advantage of the economic Jabberwockcia to pay a higher initial percentage, and invest the remaining money in a profitable business that allows you to increase capital.

Another option is to use the smart purchase , which allows that after a couple of years you can choose to return the vehicle to the bank as a debt balance, or as a new guarantee for the acquisition of a new car. A convenient alternative considering that the value of the purchased car has been devalued since purchase.

Choose a savings plan

Choosing a targeted savings plan such as “auto savings” or “vehicle savings” (depending on the name given by each financial entity), makes it possible to open a savings account to show the bank that it is able to meet the monthly payment if a vehicle credit is granted.

This type of account allows you to collect for the initial fee of a vehicle for a period of time, after which it is possible to apply for the loan. The vehicle credit will be approved if the bank’s requirements are met (including reaching the minimum amount of the initial fee), in addition to choosing this method, you can earn interest on your savings.

It is always recommended that you save the most money for the initial fee of the car you want to buy . More than 20% is ideal to reduce borrowing time and monthly installments.

Applying for and placing loans is huge in our country! Many call 2019 the year of the credit crunch! As we are experiencing an increase in loan placements day by day, we are well on our way to bringing the country’s population into debt again!

The strongest growth in borrowing for personal loans, and a significant increase in placements, could be a cause for concern, even though we are not experiencing mass credit defaults. Interest rates are also low, which is seemingly good, but also fraudulent, as a catastrophe in the background can have an explosive effect.

Interest rate hikes and tightening 

Let’s examine the chances of a crash. Could mass insolvency be stopped by interest rate hikes and tightening regulations? Let’s see if we should be afraid of a repeat credit crisis!

The disbursement of personal loans and home loans has once again reached enormous proportions, fearing that the rise in indebted retail loans will soon be a cause for concern.

Indeed, we can see a significant increase in lending to personal loans, but note that a steep increase in itself does not necessarily mean overheating in the retail credit market! So let’s compare the growth of personal loans over time.

It was 2009 when lending reached its peak, but the difference was great, because then foreign currency loans had soaring consequences! During the crisis, many families were unable to pay their increased loans, distrust of banks was right, and the bottom of the borrowing mood was in 2016.

After the low point, there was a sudden rise, which can only be seen as balancing earlier restrained behavior.

Now this may mean that the slope of the rise in placements is only a momentary condition and there is no chance of survival!

Banks are forecasting a slowdown in borrowing growth in 2019.

What do banks fear?

Personal loans are risky, and banks are paying close attention to reducing them. Interest rates on personal loans are still higher than on mortgage loans for home use or home loans.

It is easier to obtain because there is no need for collateral, or the bank may just ask for a guarantor.

• exclusion is the active KHR list,
• and a passive list is also difficult to access credit.

Compare Free-to-Use Personal and Mortgage Loans.

• A personal loan has many advantages over a mortgage.
• we also spend the free use mortgage on whatever we want,

Applying for a personal loan is significantly easier.

• A personal loan is not covered by real estate, but by our income alone, and although you need to be a guarantor in many cases, you simply have to pay it in your account within hours because of the simple application.
• Nowadays, it is a relief that you do not have to go to the bank personally, and you can even apply completely online.
• Personal income is covered by our income – so the bank has several requirements: for example, you cannot be liquidated by your employer, you cannot be on probation, and the bank also examines our spending. According to JTM rules, our income is max. We can have 50% of our monthly repayment, but the bank can set a lower percentage.

On the other hand, applying for a mortgage loan is a little more complicated

• Because banks provide real estate collateral, its valuation is time and money, so in many cases, disbursement is shifted to the weeks following the request.

Usually they require a lower amount of personal loan, with monthly payment of 40-50 thousand HUF. It is risky to ask for small loans or to cover your own in a cumulative way, since this is a significant risk, this is double indebtedness!

Low interest, low risk!

Even today personal interest rates are often one-digit and even lower!

Low interest rates, together with real wage growth, are a lower burden on the family, somewhat offset by a rise in the CPI. In most cases, interest rates on personal loans are fixed-term interest rates, because predictability and security are important to borrowers.

Serious labor shortages also reduce the risk, as the debtor can easily find another source of income instead of lost income.

Personal loan default rates, especially compared to other loans, are almost negligible in today’s credit environment.

The indebtedness of Hungarians is still far below the European average.

From this, we can see that if we want to settle our consumption from personal credit, in the current economic and market environment, we do not need to worry about our credit defaulting, it is rare for a personal credit failure.

“If something goes wrong, consult the bank, and don’t wait for the executive to knock on our door. It is not in the bank’s interest either to recover part of your claim through costly and time-consuming procedures, let alone to defraud the debtor. ”

With due care and attention, we do not have to worry about borrowing!

The aim of the GFI is to achieve interest rate stability and, in the current interest rate environment, to increase the inclination for fixed-rate loans.

If you are interested in personal and home loans, GFICs, consumer-friendly loans, contact our credit brokerage experts for free professional information!

Fill out the form and we’ll call you back!

As a result of a Federation proposal, the maximum interest rate on government-subsidized home loans may be raised to 130 percent of government bond yields, plus 3 percentage points, according to a document held by the World Economy.

The interest rate on subsidized loans is currently under 10%, even in the worst case scenario (banks charge an average of 2-3% higher interest rate on unsecured home loans for housing loans).

If the new regulation goes into effect

Banks will be able to charge a 12 percent transaction rate on subsidized home loans over a one-year period. A two percent increase in interest on a $ 10,000,000 loan over a 20-year term will result in an increase of approximately $ 13-14,000 in installments.

(Due to interest rate subsidies (the Treasury assumes 50-70% of interest in the first year, depending on the purpose of borrowing and the number of children, then the subsidy is reduced to 35-50% in the 5th year) even with the raised ceiling, they could be charged at an interest rate of 6-8 percent, and later the installment will increase due to the lower level of support.)

The effect of this on the market may be that it may not make sense to use a subsidized one instead of a market home loan and meet a number of conditions (age, marital status, public debt relief, presentation of bills on a construction loan, etc.)

From the banks’ point of view

• or interest rates go up because the banks all decide that. Market equilibrium can be maintained if the current interest rate differential of 2-3 percent between subsidized and market loans remains unchanged.

So if we think about borrowing, but we would wait to see if credit rates are going to turn out well, we can count on the above.

The baby-sitting family is now lucky if the sales contract is pushed out until May and then they can get the GFIC credit.

Loans with a maximum interest rate

According to the Act, “after July 1, GFIC loans with a maximum interest rate of up to 3% and up to HUF 15 million can be used for the purchase of used homes and houses.

• By comparison, the 20-year market loan, compared to that, has $ 4.68 million less to repay throughout the term.
• Demand is changing and real estate prices are expected to rise further with the extension of the GFIC loan. It is worthwhile to contract for an apartment in May or after, as this will help you buy your property at a better price, which could also mean millions in financial savings.
• By law, the JTM limit changes from July 1st. The debt stop rule determines the percentage of income that can be used to repay a loan. The restriction will require a higher net income to be credited to the bank to prevent debtors from taking on more than their ability to bear! The same loan installment will then require a higher net verifiable income.

For this to happen, the following conditions must be met:

The payment deadline must be kept

• When buying a used or newly built property: within 180 days after the conclusion of the contract of sale, you must submit your claim to the bank. At the end of April, it is enough to arrange our claim in October.
• In case of extension of used real estate subject to a building permit: the application must be submitted before receiving the permit for the use.
• In the case of construction: the application must be submitted before the permit for use or before the issue of an official certificate of construction.

Pay attention to the payment schedule!

The GFIC can only be requested for the purchase of the current property, it cannot be claimed for an existing housing purpose.

If you enter into a purchase agreement for a used home before July 1, you have 180 days to submit your application. Good to know and important to have

“The non-refundable GFIC grant and the preferential GFIC loan may only be used for the purchase of real estate.”

Care should be taken to keep the purchase price of the property at least as much as we can pay out of the subsidy and the loan amount.

A good tip from a specialist: Make a home loan purchase so that only the deposit is paid out until a successful credit assessment, and you will have less risk of rejection.

Therefore, it is advisable to seek the help of a credit expert who is familiar with banking practice so that you can map in advance the success of your credit assessment.

Pay attention to payment deadlines!

When paying for the last installment of a GFIC + GFIC loan, pay attention that it may take up to 30 days to qualify for the grant, plus it will take several days to sign the grant agreement and pay out the money! There is already a lot of interest in the expanded GFIC loan in advance, so we can be prepared that the lead times described above may be longer than shortened.

All the information about a new family home improvement discount and home loans are available in one place upon request. We answer individual cases, explore the most important practical issues, and help adjust to the new GFIC.

Call our credit broker, fill out the form and we will call you back!