Published: November 22 2023
Did you know that you can save money on your home loan repayments by using a health fund? In Hungary, health funds offer the opportunity to use the funds on their account for various purposes, including paying off your monthly mortgage payments. In addition, you can also benefit from tax credits that can further reduce the cost of your home loan.
Using a Health Fund for Home Loan Repayments
Health funds in Hungary can be used as self-help funds, allowing you to use the money in your account for a variety of expenses, including mortgage repayments. By paying your home loan through a health fund, you can save money on your monthly repayments and also benefit from tax credits.
Eligibility and Limitations
To utilize a health fund for home loan repayments, you must have made contributions to the fund at least 180 days prior to making the payment. Additionally, there is a maximum amount that can be used for mortgage repayments, which is 15% of the gross minimum wage, or a specific amount determined each year.
Financial Benefits
By using a health fund for home loan repayments, you can reduce the monthly cost of your mortgage and potentially save thousands of forints per year. In addition, you can also benefit from tax credits, further reducing the overall cost of your home loan.
How It Works
There are two ways to utilize a health fund for home loan repayments. The first is by having the funds directly transferred to your mortgage account, eliminating the need for additional documentation. The second option is to have the funds deposited into your personal bank account, but in this case, you will need to submit monthly requests and provide documentation to the health fund. Overall, utilizing a health fund for home loan repayments can provide significant savings and financial benefits. It's important to explore this option and consider how it can help reduce the cost of your mortgage.
Questions & Answers
How can I save money on my home loan repayment in Budapest? You can save money on your home loan repayment in Budapest by repaying it through a health fund. Health funds in Hungary offer tax deductions for contributions made to the fund, and you can use the funds to pay for various medical expenses, including your home loan repayment.
Are health funds in Hungary functioning as self-help funds as well? Yes, health funds in Hungary now function as self-help funds, which means you can use the funds in your account for both health-related expenses and to repay your home loan.
What are the requirements to use the health fund for home loan repayment? To use the health fund for home loan repayment, the contributions made to the fund must be at least 180 days prior, and they can be used tax-free for this purpose. Contributions made after this period may be subject to a 28% tax.
What expenses can I pay for with the funds in my health fund account? You can use the funds in your health fund account to pay for medical expenses such as medication, glasses, medical products, and screenings. You can also use it to repay your home loan.
Can I use the health fund to repay any type of home loan in Hungary? Yes, the health fund can be used to repay various types of home loans, including those taken for purchasing, building, or renovating a home.
How much of my home loan repayment can I pay through the health fund account? You can allocate up to 15% of the gross minimum wage for the current year towards your home loan repayment through the health fund account. This amount may vary each year based on changes in the minimum wage.
What if there are co-borrowers for the home loan repayment? If there are co-borrowers for the home loan repayment, the applicant can receive up to half of the repayment amount as support from the health fund.
Is it possible to make early repayments on the home loan using the health fund account? Yes, you can make early repayments on your home loan using the funds in your health fund account. However, keep in mind that there may be a cost associated with early repayments.
How can I access the funds from my health fund account for home loan repayment? You can access the funds from your health fund account for home loan repayment by either directing the funds directly to your loan account through the bank or by transferring the funds to your personal bank account and submitting a monthly request form along with proof of payment to the health fund.
How much financial benefit can I expect from using the health fund for home loan repayment? If you fully utilize the available support from the health fund in 2024, you can save up to 40,020 forints per month, or 480,240 forints per year, on your home loan repayment. Additionally, you can benefit from a maximum tax deduction of 150,000 forints per year by making contributions of at least 750,000 forints to your health fund account.