The lending market has flourished and banks are losing business. It is a good idea to make your clients more aware and prepared when borrowing, as this can speed things up. When applying for a loan, you must comply with the general banking terms and conditions, which apply to documents, age, employment, income and, in the case of a mortgage, the cover.
Decree on the regulation of the installment ratio and the loan coverage ratio, which no credit intermediary or disbursing organization may exempt. In all cases, the SDAs is based on verified monthly net income. For the purposes of the investigation, the debtors’ income and the repayment of existing loans shall be aggregated. The income certificate may not be older than 30 days.
The certificate may be:
employer; issued by the State Tax Administration; the amount of the salary, pension, regular payment by the Hungarian or foreign state, paid by the Hungarian or foreign state, on the basis of the client’s statement and the title of the transfer, after which the required public charges were deducted to the court a regular annuity certified by the spouse or by a professional annuity organization based on its finding or approval
In the case of an unsecured personal loan
The application of SDAs is the payload of an income on an unsecured personal loan as follows. If the borrower’s verified monthly net income is less than HUF 400,000, then the combined repayment installments of any existing and new cash loans may not exceed 50% of the certified income or 60% in the case of income exceeding HUF 400,000. Income and debt are to be treated in a consolidated manner for several co-debtors.
In the case of a mortgage
For mortgage loan applications with a maturity of over 5 years, the SDAs rate is 25% and 35%, respectively (30% and 40% for higher earners, respectively). For loans with a fixed interest rate for up to 10 years or until the end of the term, the ratio is 50% up to HUF 400,000 and 60% for income above this.
Important! In view of the increase in real wages in recent years, the Decree allows for the repayment of higher installments from July 1, 2019 at a monthly income of HUF 500 thousand instead of the current 400 thousand.
A simple rule!
SDAs also applies to all future loans. This is worth considering because if you are planning to borrow any money in the future, do not use the maximum payload of your income, as the installment of any other loan will not fit into the frame.
As far as your own budget is concerned, it is worth setting up much stricter rules than the SDAs requirement. Experts say it is not good to spend half of your income on housing. The reason for this is that this edition does not include any overhead, conservation and other overhead costs after a borrowing. If you follow the advice of experts, your quality of life will not deteriorate in the event of any increase in interest rates or changes in your life situation.
- Spend 30% of your credit on maximum
- Spend 30% minimum on savings
- Cover 40% of your living expenses