The new green loan comes with favorable terms
K&H will launch a new green home loan on the market from April, the financial institution announced. Including the discounts, the interest rate can be as low as 5 percent or as high as 4.7 percent, which would initially mean a monthly repayment of 161,000 forints for a 25 million forint, 20-year loan. Looking at the entire Hungarian housing stock, there is a need to increase the number of energy-efficient residential properties and to promote modern heating systems, as the proportion of the latter is currently marginal.
Young people who meet the conditions can take out a low-interest green home loan from April 1, K&H announced, in line with the Hungarian Banking Association’s government-backed initiative announced last fall.
Interest rates below 5 percent are also possible
The green loan in question can be applied for by young people under the age of 35 to purchase an energy-efficient apartment with a primary energy demand of up to 68 kWh/m2/year and a minimum A+ energy rating. An additional condition for the residential property is that it can have a floor area of up to 60 square meters and the price per square meter cannot exceed 1.2 million forints. Relatively few properties in the capital meet the price condition, so the green loan will be a good opportunity for young people in rural settlements and cities.
“At K&H, the interest rate on the green loan for housing for young people will basically be 5 percent for the first 5 years of the term, but with home and life insurance interest discounts this can be reduced to 4.7 percent. The scheme can also be applied for with a 10 percent deductible, with a term of 5-30 years. The interest period can be 5 or 10 years, or the interest rate can be fixed throughout the entire term for a maximum of 20 years, but it is important to know that the initial 5% interest rate is only valid for 5 years, after which the normal interest rate comes into effect. With the preferential interest rate, a loan amount of 20 million forints and a term of 20 years, the initial monthly installment would be less than 129 thousand forints,”
said Ildikó Oraveczné Németh, Marketing Manager of the K&H Retail and SME segment.
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