FUNDAMENTA-LAKÁSKASSZA PRIOR HOME SAVINGS FUND - FROM THE FIRST STEPS TILL THE FINISHING STROKES
Our own home is perhaps the greatest investment of our lives. However, with the purchase of our first home, our goals will not be achieved completely: we want to move into a bigger house as the family grows or want to renovate and modernise our existing real estate. These works mean serious financial burdens, which will be eased if we start to save up in time since in this way we will be able to realise our goals safely.
With the schemes of Fundamenta-Lakáskassza, which have variable terms, you can move forward to achieve your goals.
Who is prior home savings for? For those who:
- plan to purchase or renovate a flat or a house in the medium term,
- want to utilise the state subsidy provided for the savings,
- look for the opportunity to take housing loans at favourable interest rates,
- wish to take care of the future of their children.
How can you conclude a Fundamenta home savings contract?
To conclude the contract online please click HERE.
Contact our colleagues in our nationwide branch network!
What is a prior home savings scheme?
Prior home savings are state-subsidised forms of savings which, with regular monthly payments, provide loans with favourable conditions at the end of the term. As such, the limit for the implementation of your plans in connection with the apartment consists of 4 parts:
monthly savings + deposit interest rates + state subsidy + housing loan = total contractual amount.
A specific characteristic of these prior home savings is that it operates in a closed system, i.e. both the deposit and the loan interest will be fixed for the whole term. In this way, the monthly financial commitments are easily calculable in advance. The contractual period may consist of two well-separated phases: a savings and a loan phase. The state encourages home savings by providing a subsidy for the monthly deposits in the savings period.
After the savings period, which is minimum 4 years according to the law, you may apply for a housing loan with a fixed annual interest rate of 3.9% (APR: 5.16-6.19%) from the housing savings, depending on the savings product.
If you wish to save more than HUF 20,000 per month or you need an amount that is higher than the maximum contractual amount, your family members can also conclude home savings contracts. In this way you can multiply the amount that can be used for housing purposes!
The benefits of prior home savings
- High and guaranteed deposit yields for the whole term (EBKM (the Unified Deposit Rate Index) up to 10.56% p.a., or -0.72% without a state subsidy)
- After the savings period, you can take out a loan on favourable terms.
- The loan interest is low and fixed for the whole term at 3.9% p.a. (APR: 5.16-6.19%)
- Within the contractual amount, the ratio of the deposit and the loan is 40-60%. So you can take out an amount for the loan that is higher than the savings increased by interest rates and state subsidy.
- Non-refundable state subsidy: the state subsidises the savings by 30% of the amount deposited (maximum HUF 72,000 p.a.).
- The amount that can be requested for housing purposes may be multiplied within the family.
- You can choose any of the terms; you will be exempt from the payment of the 16% interest rate tax.
- It is safe because your investments are insured by the National Deposit Insurance Fund.
The extent of the state subsidy is a maximum HUF 72,000 a year for each contract and person, assuming regular monthly savings. The changes of the savings period may represent the value change of the EBKM, which may decrease. The EBKM value of product No. 821 (4 years, 4 months) with the state subsidy is 10.56%; while the EBKM value calculated without the state subsidy is -0.72%. The EBKM value of product No. 621 (4 years, 3 months) with the state subsidy is 13.07%; while the EBKM value calculated without the state subsidy is 1.49%. The precondition for concluding a home savings contract is to pay the account opening fee.
Let’s see an example!
You pay HUF 20,000 per month to your home savings account for 4 years and 1 month.
As such, your payments total HUF 980,000, on which interest of HUF 321,843 and a state subsidy are paid. This investment will ensure a guaranteed yield of EBKM 10.56% p.a. (EBKM: -0.72% without a state subsidy) for 4 years and 1 month. Upon the expiry of the savings period, you may apply for a loan amount of HUF 1,918,157 with a fixed interest rate of 3.9% (APR: 6.19%). In this case, you conclude a contract for a contractual amount of HUF 3,220,000.
The information is not comprehensive; the details of the home savings contract are included in Fundamenta-Lakáskassza Zrt.’s General Terms and Conditions (Business Policy). The reference APR value for the housing loan provided by the housing savings fund, calculated according to Section 9 (1) a) of Government Decree No. 83/2010 (III.25.), is 5.23%, where the amount of the loan is HUF 1 million, the term is 5 years and the precondition for concluding the new home account is the payment of 1% of the contractual amount. As for the APR indicated in this information, with reference to Government Decree No. 83/2010 (III. 25.) on the definition, calculation and publication of the annual percentage rate (APR), we hereby record that the APR has been determined in consideration of the current conditions and the prevailing legal provisions, and the terms be modified in the event of any changes in interest rates. A representative example for a housing loan: for product No. 821 (savings for 4 years, 4 months), the contractual amount is HUF 1,800,000, of which the total amount of the housing loan is HUF 1,000,000; the loan interest is a fixed 3.9%, the APR is 5.28%, for a term of 53 months. Total cost of the loan: disbursement fee: HUF 0, management fee: HUF 28,529, standard interest rate: HUF 91,219. The monthly instalment is HUF 21,528, the total amount of the instalments is HUF 1,119,748.
UniCredit Bank Zrt. (1054 Budapest, Szabadság tér 5-6.) is the public tied agent (ID No. 10325737) of Fundamenta-Lakáskassza Zrt., published on the website of the National Bank of Hungary (http://felugyelet.mnb.hu/), acting on behalf and for the benefit of Fundamenta-Lakáskassza Zrt., and it receives a remuneration for this activity from Fundamenta-Lakáskassza Zrt.
The Responsible Lending and Banking Terms and Definitions may help you become more knowledgeable on contracting a loan, while at the website of the National Bank of Hungary (MNB) you can find product descriptions that help you make responsible decisions, as well as applications that help you make comparisons. Please make a responsible and prudent decision with respect to taking out a loan, taking your income into account.
What should I know about Fundamenta-Lakáskassza Zrt.?
Fundamenta-Lakáskassza Lakás-takarékpénztár Zártkörűen Működő Részvénytársaság (Fundamenta-Lakáskassza Zrt.) has been operating in its current form since the beginning of July 2003, as a result of the merger of Fundamenta Rt. and Lakáskassza-Wüstenrot Rt.
The company’s majority holder is Bausparkasse Schwäbisch Hall AG, which has a history of 75 years and, in terms of the number of clients, it is the largest housing savings fund in Europe and has founded successful subsidiaries in many countries of the world, including the Czech Republic, Slovakia, Romania and even China. Its shareholders include the Wüstenrot Group, which has operated in Austria and Germany for a long time, Generali-Providencia Biztosító Zrt., UniCredit Bank Hungary Zrt., and Sberbank Magyarország Zrt.