Housing savings fund savings are basically subject to uniform rules, but this does not mean that it makes any difference to which financial institution and which home savings product we contract with when choosing this form of savings. Therefore, it is worth comparing your offers, preferably in as many ways as possible. Our article now focuses on examining the amounts available at the end of the savings.
As you know – we have written about it several times – thanks to the 30 percent (up to $ 72,000) state subsidy per annum, home savings savings are among the virtually risk-free savings that ensure high returns. The savings period is 4 to 10 years. The account opening fee is 1 percent of the contract amount, which can be reduced with more or less terms and conditions at most home savings deals. The account management fee is $ 150 per month. The deposit amount is subject to a fixed deposit interest, without interest tax. During or at the end of the savings period, you can apply for a favorable forint loan with a fixed interest rate and repayment installments in addition to the savings.
It is already well-known about home savings that although we can apply for state support for only one LTP contract at a time, the family can sign several contracts and later use the money for a common purpose .
When we want to sign a home savings bank contract
Many of us have the housing target for which we would spend the money after the savings period or through bridging solutions before it expires. Of course, we do not consider it impossible to figure out what you want to spend the money on, just after the conclusion of the contract or just before the end of the savings period. It is important to know that this amount can only be used for housing purposes , but its use for housing purposes can take many forms.
The contract amount consists of our savings (self-deposit + deposit interest + government subsidy) and a low-interest home loan. You are not required to take out a mortgage at the end of the savings period, or you may choose to apply only for savings plus interest and government support. With a comparative calculator, you can easily see how much money you have in your savings account over the years, and how much you will have with your home loan to help you reach your home goal.
If you only count on savings
While we may decide by the end of the savings period that we only want the money saved on the home savings account to be paid by the financial institution or if we need a loan to fulfill our housing purpose, it is worthwhile to calculate how much savings we will have at maturity. In this case, the savings mean our monthly payments (assuming a monthly payment of $ 20,000 in the tables), state subsidy and the deposit interest on our payments.
If you need the full contract amount
If we need a larger amount for the housing purpose we want to finance from the home savings, we can apply for a mortgage. In housing savings fund contracts, you can foresee not only how much you will pay, how much interest and government support you will receive, but also how much credit and interest you will be able to claim when your savings are due.
It is therefore important to be aware of the concept of contractual amount . This is the sum of our total savings and home loan. If we apply for and receive the loan, we will have to repay it in the following years, during the repayment period. We can also anticipate how long and in what monthly installments the loan can be repaid before the contract is signed.
The contracted amounts for each home savings product over the same savings periods (see the table below for the number of savings months) are similar, but not the same as forint. This is summarized in the table below for each product.
It is important to note that in addition to knowing your savings and the contractual amount of your home loan, there are other important aspects to consider before committing to a home savings product. There are several important indicators that should not be overlooked, such as EBKM or THM. But don’t forget to pay attention to promotional offers, where it is important not only to look at the promotional discount itself, but also to know the terms and conditions of the promotion.
If we take some time to compare offers, we can find the one that works best for us.