"Discover the Unique Equalizer Loan: A Special Mortgage Option for Homebuyers in Budapest, Hungary"

Published: December 15 2023

In Budapest, Hungary, homebuyers have a unique mortgage option called the Equalizer Loan, offered by MBH Bank. This loan provides special advantages, including a high interest rate on the money deposited in the payment account, which is then used to pay off the loan. In this article, we will explore the details and benefits of the Equalizer Loan.

The Equalizer Loan is a type of mortgage that can only be used for purchasing real estate. It has a fixed interest rate period of 10 years and is offered by MBH Bank. The unique feature of this loan is that it combines the benefits of a savings account with the advantages of a loan. The bank pays us a interest rate on the money held in the account, which is then used to reduce the outstanding debt. This results in faster repayment and lower overall interest payments.

There are two main advantages of the Equalizer Loan. Firstly, the money held in the account does not need to be locked away, yet it earns a high interest rate comparable to the loan interest rate. This makes it ideal for individuals with existing savings or higher incomes that they do not fully spend each month. Secondly, the accumulated amount in the account is free of charge used to reduce the outstanding loan balance every six months. This decreases the loan term and the total amount of interest paid.

It's important to note that only MBH Bank offers this loan option, so it is necessary to open an account with the bank. The amount placed in the account earns a high interest rate, but it cannot be used freely as it is automatically used to pay off the loan. Additionally, the bank only pays the interest rate equivalent to the loan interest on up to 70% of the current outstanding balance.

The Equalizer Loan may not be ideal for everyone. It is better suited for individuals with higher incomes and existing savings that they are willing to deposit into the bank account. It is also a good option for those who prioritize the quick repayment of their primary loan and are willing to place their savings with the bank.

Let's consider an example scenario where the desired purchase price of the property is 60 million Hungarian forints, and a loan of 12 million forints is needed for a 20-year term with a 10-year fixed interest rate period. Assuming a monthly credit of 150,000 forints and a monthly account balance increase of 40,000 forints:

If you are interested in this mortgage option, make sure to consult with an expert for free assistance.

What is the Equalizer Loan offered by the MBH Bank? The Equalizer Loan is a unique mortgage product offered by the MBH Bank in Hungary. It allows borrowers to earn a high deposit interest rate on the money held in their payment account, which is then used to repay the loan. This provides a significant advantage compared to other loan products.

Who is eligible for the Equalizer Loan? Any long-term resident of Hungary, both Hungarian citizens and foreign nationals, who are looking to purchase a property can apply for the Equalizer Loan. However, it is important to note that only the MBH Bank offers this particular loan product, so applicants would need to open an account with the bank.

What are the advantages of the Equalizer Loan? The Equalizer Loan offers two significant advantages. Firstly, borrowers can earn a deposit interest rate on the funds held in their account, which is higher than what most banks offer for savings accounts. This makes it an attractive option for those who have savings or higher income that they do not fully spend each month. Secondly, the loan allows for free and regular repayment of the outstanding balance, which reduces the loan term and the total amount of interest paid.

What should be considered when applying for the Equalizer Loan? It is important to note that only the MBH Bank offers the Equalizer Loan, so applicants would need to open an account with the bank. The funds held in the account cannot be freely used, as the earned interest is automatically used to repay the loan. Additionally, the bank only pays the deposit interest rate equivalent to the current capital owed on the loan, up to a maximum of 70% of the total capital owed.

Who is the Equalizer Loan suitable for? The Equalizer Loan is not suitable for everyone. It is generally more suitable for individuals with higher income or existing savings that they are willing to hold in a bank account. It is also a good option for those who prioritize the quick repayment of their primary loan and are willing to place their savings in the bank.

Can you provide an example of the advantage of the Equalizer Loan? Certainly! Let's say you want to purchase a property for 60 million Hungarian forint (HUF) and you need a loan of 12 million HUF for a 20-year term with a 10-year interest period. With the Equalizer Loan, your account would receive a monthly credit of 150,000 HUF and the account balance would increase by 40,000 HUF every month. Compared to a standard loan with an interest rate of 7.64%, the Equalizer Loan with an interest rate of 8.13% offers a lower initial installment of 97,918 HUF compared to 101,628 HUF. Additionally, due to the equalizing effect of the loan, the debt and loan term decrease every six months. In this scenario, the Equalizer Loan would need to be repaid in 179 months instead of 240 months, resulting in a total repayment of 18.1 million HUF compared to 23.5 million HUF for a standard loan. This means that you could potentially save 5.3 million HUF with the Equalizer Loan. The Total Cost of Credit (THM) value also reflects this difference, with a THM value of 6.20% for the Equalizer Loan compared to 7.97% for the standard loan.

How can I learn more about the Equalizer Loan? If you are interested in the Equalizer Loan, you can seek the assistance of an expert who can provide you with free guidance and help you understand the details and benefits of the loan.