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 interest period:
For HUF 5 million loan with a 240-month term, with a variable annual interest rate of 10,5% (based on 5Y interest rate period); with home insurance discount, monthly repayment instalment HUF 49 919, total amount to repaid HUF 12 133 560, total loan charges HUF 7 133 560; within this latter, fees and costs HUF 153 000. The annual percentage rate (APR) is 11,3%.
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.
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
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
net monthly income of at least HUF 500,000 or more
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, and we also offer variable-rate loans for home purchase, building and renovation.
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).
starting fee discounts:
- we will refund you the notarial deed fee up to a maximum of HUF 40,000
- 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
- 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)
- 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
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 40,000) 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
- 0.1% 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 life insurance assigned to the Bank up to the loan amount. If you have no regular-premium K&H 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.
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:
- appraisal ordered
- application approved
- loan agreement drafted
- loan disbursed
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.
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
depends on the interest period chosen
- 1, 5 year interest period:1–30 years
- 10-year interest period:15–30 years fixed interest period within the whole term: 5–30 years
- 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.
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, construction, renovation and refinancing for 5, 10 year interest periods and fixed interets for the whole term.
Normal Mortgage Loan for any purpuses for 1 year interest period.
We draw your attention to the consumer protection website of Financial Navigator Advisory 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.