You do not need a minimum monthly income of 200 thousand HUF for a baby loan
On July 1, 2019, the baby loan will be launched in a week, and the government borrowed it in February.
The statutory minimum conditions apply to all claimants. However, there are a number of questions regarding the credit assessment, which is a matter for banks under the Regulation.
The bank decides what minimum income is required
One of the characteristics of a baby loan is the uncertainty about expected net income. In short, as long as the loan is interest-free, you have to pay a lower installment and not worry about the interest rate risk. In this case, the monthly repayment installment will remain below 50,000 forints. This can be called an optimistic scenario.
Based on the baby loan calculator, the initial repayment installment will be HUF 45,834 for a loan term of 10 million for a term of 20 years. This also includes the guarantee fee. Thus, according to the Income-to-Pay-Back Ratio (JTM) rules, a monthly net income of up to $ 99,085 may be enough to successfully claim $ 10 million, as long as banks apply the statutory 50 percent maximum payload. This can be done if the loan has a fixed interest rate or has an interest rate of at least 10 years.
The situation is completely different when the claiming couple fails to pay the interest due to something, for example because they divorce prematurely or still have no child within 5 years of the claim. In this case, the outstanding principal will have to be repaid with interest and the loan will have an interest rate of 5 years.
Based on the current reference rate
This can increase your repayment by up to $ 100, and your repayment can be up to $ 200 per month. This is a pessimistic scenario, and with that in mind, you really need at least $ 200,000 in income before you can apply for a $ 10 million loan.
According to Good Finance, there will be a credit institution that will consider a more optimistic scenario than a credit assessment, so it will be more lenient and consider whether the installment to be paid at the time of the interest rate subsidy should fit into the income.
At the request of Good Finance, Goodbank has confirmed that it will use interest-free installments and a 50 percent pay-as-you-go income test. As previously described, Goodbank needs a proof of minimum wage for the baby loan before applying.
Several banks have already described the terms
Several banks have already told us how much net monthly income is required to apply for a baby loan, but it will only be revealed at the actual credit assessment whether our proven income will be sufficient for the maximum loan amount of $ 10 million. Since the couple can file a claim together, the bank will consider the total income of both parties.
For banks that take into account the interest-free installment when examining the payload, the expected income for a successful claim of $ 10 million may range from $ 91,000 to $ 153,000, depending on the bank’s internal regulations. In the case of an installment with interest, the expected net income will be between HUF 148,000 and HUF 247,000. It can be seen that there are huge differences between banks in terms of income analysis.