How to get a Hungarian home loan with foreign income?
A significant number of Hungarians are looking for bread in other EU countries, with up to 600,000 people working mainly in Austria, Germany and England. Many of our compatriots who have a Hungarian address to commute, but also those who live in more distant countries, are right and many have planned that if they come home, they would be in possession of a Hungarian property that they could take home upon arrival.
But is it possible that someone with a foreign income can get and pay a Hungarian home loan, even though they live abroad for a living?
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What’s good about working abroad
- If you are commuting, that is, having a Hungarian address but moving to work on the better paying side of the border, then in principle there is no obstacle to getting a Hungarian home loan during this time!
- address card
- tax card
- And you need to have a continuous job for more than 3-6 months.
- In most cases, a contract of indefinite duration, proof of income is required.
Financial institutions prefer a contract of indefinite duration because of their security, but if the borrower’s workplace has already extended his fixed-term employment contract, which has a lot to do with the employee’s judgment!
There are banks that deal with this issue more flexibly, so when applying for a loan, it is good to know which bank is on the issue when it comes to assessing a loan. It is very helpful to consult a financial advisor who is aware of the lending attitude of each bank.
There are a few banks that are waiting for those interested, because you already have an employer form in English and German for this purpose!
Generally, the following documents are required to start a transaction:
- 3 months bank account statement, which gives you a good idea of your income. This can be a foreign bank account, but it is up to the creditor bank to accept the statement downloaded from netbank or to stick to a stamped statement and two signatures printed in a fully reliable bank branch.
- Most domestic financial institutions also ask for proof that a non-resident borrower cannot be found in the register of bad debtors there, proving that he has no outstanding debt.
Who can’t apply for a home loan?
- Hungarian banks do not provide mortgages for fixed-term employment.
- Business owners and sole proprietors cannot hope for a loan at home, it is better to claim it where they earn their income!
- Hungarian address card is required! Since everyone has an official address card when they are there, not at home, so if you live abroad for a long time, you will lose your Hungarian address card automatically!
Foreign workers do not have a problem with the Higher Income Ratio Index due to their higher income! When it comes to commuters, rent doesn’t even come with it because you live in Hungary, you shouldn’t rent a room or apartment. The JTM reveals how much credit you can take risk-free in proportion to your income, which is the job of the debt brake.
- “With a net income of $ 400,000 per month, the maximum amount that can be repaid is 25%, 35% and 50%, depending on the length of the fixed term for a 5-year, 5-10-year or at least 10-year loan . With a monthly income of HUF 400,000, JTM is 30, 40 and 60%, respectively. (The longer the interest rate of a loan is fixed, the lower the interest rate risk is and therefore the JTM is higher.), ”We learned from our independent financial expert.
In the case of foreign income
It is strongly recommended that you seek the help of an expert advisor who is well aware of the requirements of each financial institution, so we do not run tiring, unnecessary circles in obtaining a home loan!
We would also like to help you with the administration, we can offer different current loan offers without having to visit several banks. We offer free, convenient, fast, reliable administration, and our credit intermediaries are guaranteed to offer such facilities as banks.