It was excited to call me home mortgage rates, now available for 10 years at a fixed mortgage rate of 3.49% and a three-year interest rate of 2.89% can also be requested.
I told him to write an article about it, which he did. I’m going to want to write about it, with interest rates like this, it’s worth looking at what happens when you buy a property for rent on a loan or even combine it with a home savings, and then house prices or rent fall. How much to drop in prices to make sure you’re going wrong. The topic promises to be exciting. But as long as I have time to write this article, follow him.
(If you have a credit question, please write to her or call her at the link above, you will be less likely to reply in the comments.)
Panorama of the Qualified Consumer Friendly Home Loans Market
The first Qualified Consumer-Friendly Home Loan was launched in June 2017, and by October each bank, except for a few financial institutions, had brought out its own credit products in line with the MNB’s tender conditions. There are some who are apparently just there to tell you they have one (just a period of interest, non-competitive pricing), but that’s not the case.
After the first few products appeared, there seemed to be a tendency to narrow the interest rate differentials between individual loan offers and to narrow the gap between the conditions available to high-income and / or self-sufficient households with lower incomes , or it will cease completely .
The latter statement still holds true
For example, there is little difference between the best deals available to customers who choose a five-year interest rate period if they make a $ 150,000 credit or a $ 400,000 monthly bank account credit. In the case of a ten-year interest period, this tiny difference disappears.
Since then, the pricing has been very elongated. This was despite the fact that the interest rates on these loans were clearly maximized. In my view, the reasons are:
There are financial institutions that, realistically, find that the majority of home loan clients do not choose a lender based on the total cost of the loan, especially in the case of a controlled consumer-friendly loan, but on other aspects not discussed here. Thus, in addition to meeting the regulatory maximum interest expectations, they do not want to compete for unnecessary price at the expense of their own profits.
there is a big fight at the beginning of the field
Many are hoping to increase their market share through consumer-friendly loans. Several financial institutions, which have never had interest rates on 3, 5 or even 10 or 15 years, have been developing new products in the interest of consumer-friendly rating.
The field became thicker. Since these loans are difficult to offer at significantly better rates than the other competitors in the cost of prepayments and one-time loans, the interest rate on the loan is the only one they can bid on. And the bid started. Several new qualifying products have already started with top 3 pricing. And those who have had consumer-friendly loans for months have regularly used the turns to lower interest rates.
Unlike loans with monthly interest rates of 3, 6 and 12 months, fixed rate loans for 3 to 5 years are not fixed at the reference rate. (Which is not to say that they can be freely re-priced after a fixed period. This will be done once in a while.) On the other hand, banks’ funding costs can also be defined here through the yield on long-term government securities.
Financial institutions do not have to track the decline in the cost of funds
However, financial institutions do not have to track the decline in the cost of funds through month-to-month interest rate cuts (only the maximum interest rate decreases month-to-month.) There’s no where. As the benchmark yield published by the Central Government Debt Management Center declined significantly in September, there were financial institutions where mortgage rates fell significantly in October, while they remained unchanged from September. This can also bring about significant changes from month to month in the long run…
A significant decrease in interest rates may also warrant a rethink of the topics frequently discussed on the Athos blog: – Is it worthwhile (partly) to buy and rent a home on credit? What is the Ideal Loan-Home Savings Bank Combination? The author of the present lines in the latter topic is also planning one (or more) writings.