K&H home loans

your home can grow on your demand now

  • with up-front fee discounts
  • APR: 4.4–7.4%

You might take home 100,000 HUF as part of our credit campaign

You get 100,000 HUF if

  • between June 1, 2021 and August 31, 2021
  • you apply for K&H mortgage or babyboom loan and
  • the loan will be disbursed by the end of 2021, also
  • the total loan amount reaches or exceeds 10 million HUF,
  • in case of a business or qualified customer friendly mortgage loan, you must agree to the terms of the money transfer interest discount,
  • crediting happens in January 2022

Loans participating in the promotion:

  • K&H mortgage loan: 4.4–7.4%
  • K&H qualified customer friendly mortgage loan APR: 4.5–7.3%
  • K&H interest-subsidized mortgage loan APR: 3.3%
  • K&H renovation loan with state subsidy APR: 3.1%
  • K&H babyboom loan APR (with interest subsidy): 0.5%
  • K&H babyboom loan APR (without interest subsidy): 6.4%
loan amount
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interest period intalment interest rate APR total amount to be repaid total interest discount  
interest period intalment interest rate APR total amount to be repaid total interest discount  
result of your calculation
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The calculation is based on a non-subsidised K&H home loan with the interest rate fixed for one year, standard up-front fees, a K2 risk rating, and standard conditions as stated in the relevant Announcement, assuming that those conditions remain unchanged throughout the entire term.  
The annual interest rate and thus the monthly instalments are decreased by the chosen interest discounts. This calculation does not constitute an offer and does not replace the standard credit.
Representative example for qualified customer friendly mortgage loans with 5 years interes period:
For HUF 5 million loan with a 240-month term, with a variable annual interest rate of 3,79% (based on 5Y interest rate period); with money transfer discount and home insurance discount, monthly repayment instalment HUF 29 749, total amount to repaid HUF 7 286 040, total loan charges HUF 2 286 040; within this latter, fees and costs HUF 146 280. The annual percentage rate (APR) is 4,1%.
The loan is provided by K&H bank. Number of instalments: 240. The loan is secured by real estate mortgage. Property insurance must be taken out for the real estate securing the loan.

are you interested in other loan goals? interested

should I choose a fixed or floating rate loan?

When you choose a long interest period, the interest rate risk is typically lower.

In case of a longer interest period, the responsibility of the interest rate risk belongs to the Bank.
Therefore, a longer and more expensive interest period can be interpreted as an insurance against unfavorable (and favorable) future interest rate changes.

Whether you choose a fixed or floating rate loan can also be influenced by legal conditions. The aim of the legislation is to enable the borrower to become indebted to a lesser extent with a risky loan (variable interest rate).

Furthermore, the maximum amount of credit that can be taken out depends on the income and the chosen interest period. The aim of the governing legislation (MNB Decree 32/2014 (IX.10.)) is to avoid over-indebtedness.

In the table below, you can see how much of the certified income can be spent on loan installments, at the given income level, and based on the interest period of the loan you intend to borrow

value of monthly net income

interest period

less than 5 years

at least 5 years, but less than 10 years

at least 10 years or fix

x% of income can be spent on loan installments

 

Monthly net income below HUF 500,000

25%

35%

50%

 

net monthly income of at least HUF 500,000 or more

30%

40%

60%

So your decision can be greatly influenced by the statutory requirement for the burden of income and how important it is for you that the interest rate does not change over the term.    
Available options: 1 year, 5 years or 10 years, during which the repayment installments are unchanged, in case of fix rate for 10 years, 15 years, and 20 years product the repayment instalments are unchanged within the whole term.

Our long-term (5, 10-year) and fixed-rate loans have received the Qualified consumer-friendly rating, but we also offer variable-rate loans for home purchase.

With the K&H repayment-reducing loan, customers with an immediate repayment history can redeem their forint- or foreign currency-based real estate-backed loans provided by any bank. By switching, they can also save significant amounts compared to the current monthly installment (if the conditions of the loan to be redeemed are less favorable than recommended).

why should you choose k&h home loan?

Starting fee discounts:

  • we will refund you the notarial deed fee up to a maximum of HUF 60,000
  • we do not charge a contract fee
  • we refund the valuation fee for one property
  • we take over the fee for the title deed and, if necessary, the copy of the map
  • if the conditions are met

Interest rate-decreasing discounts:

  • discount for money transfer (0,5% discount from the transaction interest)
  • discount for home insurance with K&H (0.1% discount from the transaction interest)
  • discount for K&H risk life insurance or K&H payment protection insurance (0.2% discount from the transaction interest)
  • premium and private banking discount (0.2% discount from the transaction interest)
  • these interest discounts may be combined

Managed from home:

  • meeting at the bank branch is necessary only when we concluding the contract
  • we make a preliminary credit review over the phone
  • it is sufficient to submit the application documents by e-mail
  • we will notify you via SMS or telephone when the main points of the process are reached

discount conditions

fee discount conditions

In our current promotion, the following up-front costs are waived, refunded, or paid by the Bank for loan applications accepted:

  • the notarisation fee is refunded (up to HUF 60 000) if you have a K&H “kényelmi”, “maximum” or “kényelmi plusz” account package and keep it for five years from contracting, or if you open a new K&H “kényelmi plusz” or K&H “prémium” account and service package and keep it for five years from contracting
  • we refund the entire fee charged for appraisal / technical inspection (for one property real estate, for the first time)
  • we pay the price of obtaining a title deed and any map extract required for the appraisal / technical inspection (up to two title deeds and one map extract for one property, provided that these documents can be downloaded from the TakarNet system)

The following discounts are also available concerning up-front fees:

  • the entire contracting fee is waive
  • we pay the price of obtaining a title deed and any map extract (up to two title deeds and one map extract for one property, provided that these documents can be downloaded from the TakarNet system)

The fees and costs waived or paid by K&H Bank must be paid by the borrower if the loan is fully prepaid or terminated within two years from contracting (or within a shorter loan term) for a reason not attributable to the Bank, or if the repayments are made from any other account than the Client’s retail bank account with the Bank.

interest discount conditions

  • 0.5% discount from the transaction interest if you irrevocably undertake to have monthly money transfer (at least HUF 150,000 net) transferred onto your (repayment) account with K&H during the entire term.
  • 0.1% discount from the transaction interest if you have or take out K&H home insurance for the real estate securing your loan, and maintain that insurance during the entire term.
  • 0.2% discount from the transaction interest until the end of the term if you already have regular-premium K&H risk life insurance assigned to the Bank up to the loan amount. If you have no regular-premium K&H risk life insurance but want this discount, then you need to take out K&H family life insurance (with a loan collateral clause) or a K&H mortgage payment protection insurance with regular premium payment, maintained until the end of the term. In case of a K&H mortgage payment protection insurance, a withdrawn interest discount shall not be available again.
  • 0.2% interest discount for a retail client who has a premium account and service package contract or a K&H private banking framework agreement when applying for the loan (or will have it within one month from loan disbursement), and meets all other conditions. The premium banking discount is available if the borrower meets the general premium banking service usage criteria. The interest discount is conditional on the availability of a valid premium banking contract or a K&H private banking framework agreement during the term.

The interest rates might be combined, but the final interest rate cannot be lower than the minimum interest rate described in the Announcement.

The above interest discounts are not available if the installment account is any other than the client’s retail bank account with K&H.

other favorable conditions

additional benefits during the term:

  • free interest period change during the term in the interest change period
  • free prepayment option up to twice a calendar year, with a maximum amount of two monthly installments per year, up to a maximum of one monthly installment in case of prepayment twice a year
  • 10% discount for K&H Bank’s customers in case of taking out K&H home insurance
  • there are no additional monthly fees (such as handling fees) in addition to the transaction interest
  • with an extension of the term, the repayment may be further reduced

text message notification about the loan application status

Take advantage of this new service to keep notified of the status of your application. Follow up the procedure so that you can schedule your arrangements related to the transaction. And the service is free of charge, too!

A text message is sent to your mobile phone about the following events:

  1. appraisal ordered
  2. application approved
  3. loan agreement drafted
  4. loan disbursed

loan application process

Our new process allows you to decide when and where to arrange your loan application, it is sufficient to go to the bank in person only when you sign the contract.

  • If you are thinking of borrowing, please ask for a callback on our website or visit the nearest K&H branch. Our colleagues will help you to choose the most appropriate loan based on your needs.
  • Upon your request, we will prepare a preliminary loan appraisal free of charge based on the data you have dictated, and at the same time you can find out the expected amount of repayment.
  • During the conversation, you can choose how you want to process the loan application in the future (at a K&H bank branch or online).
  • After that, we will send you an email with the needed documents for the application.
  • The credit expert of the K&H bank will contact you.
  • You must send the completed, signed and scanned (photographed) loan application documents and the documents required for the credit assessment to the credit expert by e-mail.

 We will send you an SMS about ordering the valuation

  • In case of complete documents, you don’t need to take further action on the review.
  • The loan claim is assessed on the basis of the appraised property and the proven income. The necessary valuation is ordered by a K&H loan expert. The valuation fee is also refunded in case of one property.
  • The appraiser will contact you to have a look at the property at an agreed time. The appraiser determines the market value of the property, of which the Bank normally lends up to 80%.
  • After that, the credit expert will contact you by phone to agree on the date of concluding the contract, and will inform you about the essential content elements and conditions of the loan. 
  • In case of a positive review, the Bank will prepare the loan agreement for you.
  • Before concluding the contract, we will send you the draft contract by e-mail, which we will provide at least 3 days to review. Our offer is valid for 15 days.

 We will send you an SMS about the credit assessment decision

  • When concluding a contract, you must sign the completed documents on paper form, which have been already returned by e-mail to the bank branch. You must also present / submit the original documents required for the credit assessment.
  • The credit expert will check that the original documents match the documents sent by email. In case of discrepancy, the Bank will not maintain its offer, it will be considered as a new application.
  • Then comes the signing of the loan agreement.
  • The loan agreement must be notarized. We also help you with this administration.
  • We also accept the authentic publication of the notarial deed in electronic form, sent by a notary public to the bank's portal from „Cégkapu” webpage. You can still sign the notarial deed only in person at the notary's office.

 We will send you an SMS about the completion of the loan agreement

  • We transfer the amount of the loan to the person specified in the sales contract.
  • The Bank's lien will be registered on the property until you repay the loan.
  • After disbursement, as agreed in the loan agreement, ensure that the amount of the installment is available in the specified bank account at all times.

 We will send you an SMS about the disbursement

loan amount, interest rate and loan term

loan amount available: HUF 2–100 million

loan interest rate: depends on the interest period chosen

  • 1-year interest period: 12-month BUBOR + fixed interest margin
  • 5-year interest period: fixed interest within the interest period
  • 10-year interest period: fixed interest within the interest period

fixed interest period within the whole term

  • fix rate for 10 years product: fixed interes within the whole term
  • fix rate for 15 years product: fixed interes within the whole term
  • fix rate for 20 years product: fixed interes within the whole term

loan term:

depends on the interest period chosen

  • 1, 5, 10-year interest period: 1–30 years

fixed interest period within the whole term

  • 10 years fix rate: 10 years
  • 15 years fix rate: 15 years
  • 20 years fix rate: 20 years

credit approval

  • K&H’s pricing is risk-based, i.e. the interest rate always depends on the final risk rating of the loan transaction. Six transaction rating categories have been established for home loans; see our Announcements for the interest rate level assigned to each transaction rating category.
  • The maximum financing ratio (i.e. the ratio of the loan amount to the market value of the real estate offered as collateral) is 80%.
  • This product requires property insurance.

payment protection insurance – if safety matters

If timely debt service even in the case of an unexpected event (unemployment, illness, permanent disability, death) is important to you, then choose K&H’s mortgage payment protection insurance to go with your new loan. The monthly premium of this optional payment protection insurance is merely 6,4% of the repayment instalment. The service is provided by K&H Insurance. ​

definition of interest periods

12-month interest period:

The interest rate may be modified at the beginning of a new interest period according to any change in the 12-month BUBOR that was valid two days before the last work day of the month. Consequently, the monthly repayment instalments in the new interest period may be higher or lower than before. The interest margin stays unchanged until the end of the term.

 5- or 10 years interest period:

The interest rate may be modified at the beginning of each interest period according to an interest rate modification indicator, which is a publicly available ratio that objectively reflects any change in circumstances beyond the bank’s control. If the interest rate modification indicator is used, the loan rate may only be increased or decreased for reasons beyond the bank’s control. The National Bank of Hungary defines and publishes the rules on the calculation and applicability of the interest rate modification indicator; if it is applied, banks may only increase or decrease the loan rate according to the indicator.

fixed interest period within the whole term

That means that the interest rate and the monthly installment cannot change in the whole lifecyle of the loan.

Frequently Asked Questions

Where can I apply for a loan?

Via the TeleCenter, in a bank branch.

What does BUBOR stand for?

The Budapest Interbank Offered Rate, which changes in line with the central bank’s base rate.

For what purpose can the loan be taken?

For real estate purchase, construction or renovation, or refinancing a HUF-based mortgage loan taken out for any of these purposes.

What types of loans exist?

Qualified Customer Friendly Mortgage Loan for home purchase and refinancing and 5, 10 year interest periods and fixed interets periods Normal.

Mortgage Loan for any purpuses for 1 year interest period and for construction and renocation 5, 10 year interest periods and fix interest periods.

documents

General Terms and Conditions
General Terms and Conditions of retail loans
We draw your attention to the consumer protection website of the Financial Consumer Protection Centre of the National Bank of Hungary where you can find useful product descriptions and various applications for comparison (loan calculator, budget calculator for households).

The comparison of qualified credit products offered by credit institutions is ensured by standardized documents and prospectuses, and in a website which operated by the MNB. The website is available at the following link: www.minositetthitel.hu

This material does not constitute an offer. The Bank reserves the right to change the conditions. A detailed description of the product and its terms and conditions can be found in the relevant loan contract; the General Contracting Terms and Conditions applicable to retail loans; in K&H Bank’s General Terms and Conditions; and the Announcement on K&H’s personal loans, which can be viewed in our bank branches and on the www.kh.hu website.

The calculator is based on K&H business based housing loan product with a 1-year interest period and a K&H qualified consumer-friendly housing loan for the other interest periods, with a K2 risk rating, based on the conditions of the current Announcement, assuming unchanged conditions over the entire term.

The fees, costs and interest rates in the above advertisement have been defined according to the Announcement on K&H’s personal loans. The calculator constitutes a representative example. See the “list of documents required for consumer loan application” under the “documents” tab for the specific documents required for loan application, or visit a K&H branch for further information. The approval of a loan application is always subject to evaluation by the Bank.