You must have thought about how much easier it would be for you to live in your own home. You could arrange it the way you imagined it, and you could transform it any way you like, and you wouldn’t have to worry about not having a roof over your head every now and then.
Own a home not only provides comfort and tranquility but also security
So understandably almost every Hungarian is thinking of buying a home.
The amount you can spend for this purpose is likely to be accumulated over many years, and even then you may not be able to buy your dream home without borrowing. To make the most of your money for your home purchase goals, you should save money that goes beyond the creative use of pillow cases and pots.
If your goal is a home, then one of the best things you can do is open a Home Savings Account (LTP) account and collect your money there.
What you need to know about a home savings bank
Almost no one needs to be introduced to one of Hungary’s most popular savings forms, but it is a good idea to keep reminding yourself why you should choose a savings account to save money:
You can save your apartment between 4 and 10 years
You currently have four providers of home savings contracts: Good Finance Home Savings Fund, Fundamenta Home Savings Fund, Aegon Home Savings Bank and Erste Home Savings Funds
The maximum deposit can be $ 20,000 per month for a contract that you can pay on a monthly or quarterly basis
A person can only have one home cashier’s name
The state gives you 30 percent support after your payments, up to a maximum of $ 25,000 a year
If the money saved is not enough with government grants, you can take out a discounted home loan along with your home savings
You don’t have to wait for the end of the term, you can take it in the form of a bridging loan right after the contract is signed
Not only can you buy a home: you can renovate, modernize, and even prepay your existing home loan with savings
If this is not enough, it is possible to use multiple accounts within the family for the same purpose, and you can multiply the amount of government grants with more accounts.
Keep in mind that LTP also has costs: a monthly account management fee of $ 50 and an initial account opening fee. The fee for opening an account can be very high, as it is usually one percent of the contractual amount you can borrow at the end of the term. This can be up to $ 200.
However, there is still a misconception among many people that due to the strict regulation of home savings funds, it does not matter which service provider we conclude the contract with, the same construction. Well, that’s not the case at all. All you have to do is think of a four-year maturity, which is 48 months for one fund, 46 months for another and 49 months for a third. One month difference can mean a difference of ten thousand forints in terms of our total savings.
Account Opening Fee – Save Tens of Thousands with Action
One of the most important factors that you need to consider when comparing homeowners is the account opening fee. This is one of the factors that significantly influences the return you can make with your savings. The fee for opening an account is typically 1 percent of the contract amount.
For a 10-year contract, this can be $ 200, which you need to put on the table at the start of the contract. The higher the account opening fee, the lower your Earnings (EAR) can be, which, for example, can take up to 2-3 percent from an otherwise high 12 percent return on a 4-year plan.