Since the announcement of the Baby Waiting Grant, we have repeatedly stated that it is worthwhile to hire a Baby Waiter even if the childbirth is not fulfilled. The state’s $ 10 million grant will be one of the best personal loans if the baby doesn’t arrive.
Here, too, there is a situation where it is better to apply for market credit.
Let’s see what they are?
If you do not pay, you have to pay back the HUF 10 million taken at worst at an 8% market rate! It can be seen that even in the event of default, it is one of the best loans available in the market today!
This is not always the case either, without a baby, it seems like a good choice for a baby – our financial expert told us. Let’s look at some cases where you might not make the right decision on a baby loan.
If our financial situation is uncertain in the long run
- According to the rules, if the baby does not arrive within 5 years, the interest rate subsidy that we have taken up during that time is to be repaid in one lump sum, and the repayment must be made within 120 days.
- The 10 million HUF, with a 5% interest subsidy and a 20-year maturity, would be 2.1 million HUF, payable within 4 months.
- Fairness, when received, means $ 100,000 for 24 months and even the installment on the loan. Family budgets can collapse quickly, and you should avoid this situation.
- In the case of a market-rate loan, there should be no such “surprise” as long as the repayment behavior is followed.
The interest rate on today’s loan is usually fixed, so the installment payment does not change throughout the term.
If you have outstanding income
- Many articles have said that it would be unbeatable to have a baby-sitting allowance without having a baby if they can justify a substantial salary and pay the installment exactly on a monthly basis, even at higher rates. Thus, a baby loan can be better than a market loan.
- You can take out a market loan with a APR of around 7%! ONI CREDIT Bank gives HUF 6 million with a maturity of 60 months at 7.8%. The condition is that if we are able to provide a minimum monthly income of $ 240,000, the installment is over $ 118,100.
- Zebu Bank’s even better offer is available for 10 million 60 months at $ 6.9 APR and $ 195,565 monthly repayments. Here, however, the justifiable income is HUF 400,000 per month.
If the refund is made sooner
- It is bad for us to repay 50% of the loan within 5 years of the date of disbursement, because we have to repay the interest subsidy on the early repayment, which in this case is HUF 1 million.
- For market loans, banks ask for 1-2% of the prepayment, which is better than a market loan.
We require it for home purchase
According to experts, if you do not come with a baby and buy a home, we are better off with a traditional mortgage because it can be borrowed for a long period of time at a lower rate than the interest on a baby.
Neither CSOK nor Baby Waiting is appropriate, if the child does not arrive, the penalties are serious, not worth it!
In this case, stay with traditional qualified consumer-friendly mortgages.
- Konsume Bank pays HUF 10 million for a 20-year term with a 5.74% APR for a monthly payment of HUF 68,740.
- At EarnWe Bank we can further reduce the monthly installment. Instead of paying $ 68,742, we pay $ 63,221 in installments if we choose a 10-year interest period and reach a monthly income of $ 200,000.
- The advantage of qualifying mortgages is that the prepayment fee is up to 1% and free from home savings! If you pay off your credit as soon as possible, it’s the cheapest.
So we can see that having a baby is not always a perfect choice. Take a look and find the right solution with the help of our credit brokers.
If you have a housing goal, would like to take out a home loan, are interested in your options, or may have been interested in the new CSOK changes, are interested in the future details of your new family action plan, call our credit brokerage experts