Home saving has been one of the best publicly supported investments for years. The state subsidy rate remained at the level of $ 72,000, ie 30 percent a year, but up to this amount the state contributes to our own contribution. In today’s interest rate environment, it still provides relatively high returns on our housing savings, with virtually no risk, plus no interest tax. With our calculator, we show you how much you can save with a monthly payment of $ 10,000 in about 4 years.
The state subsidy can be fully utilized with a monthly saving
Although a person may apply for state support for only one contract at a time, there may be several contracts in the family. So if we could set aside more than $ 50 a month, we could open LTP for our spouse and children, for example. When it comes to construction, buying a home, modernizing, the family members’ contract can be merged. In this way, and with the interest-bearing loans available for the LTP contract, a considerable amount is already available .
As you know, the LTP contract savings period is between 4 and 10 years. The account opening fee is usually 1 percent of the contract amount. The account management fee is $ 150 per month. The amount paid is subject to a fixed deposit interest free of interest. During or at the end of the savings period, you can apply for a favorable forint loan with a fixed interest rate and repayment installments in addition to the savings.
In addition, from July 2017, you will be able to sign an LTP contract on even better terms, as the payout period will be reduced from the current 3 months to 2 months. In practice, this means that homeowners will be able to get their money sooner, because the end of the savings period will shorten the payout period by one month, so the home savings bank can pay off the savings sooner.
Although the main features of home savings are the same, there are offers that are more favorable in some respects or offer some sort of promotion.
How Much Money Can You Save on a 4-Year Home Savings Contract?
Let’s see how much savings we can make with each home savings product! At the time of writing our calculations, we calculated a monthly saving of $ 20,000 and the shortest possible term of 4 years . Now, we’re focusing on showing you how much savings you can make on individual home savings products by paying $ 20,000 every month for 4 years and getting your deposit payments and state subsidy .
It is important to know that the contractual amount consists of our savings (self-payment + deposit interest + government subsidy) and available home loan . Thus, the table also shows the contractual amounts for each arrangement.
What are the conditions and promotions for a home savings contract?
Before concluding an LTP contract, be aware of the terms and conditions of home savings plans and the promotions that may be offered to us when choosing a particular product.Home savings most often offer promotions for the account opening fee, as this is a cost that you have to pay immediately when you open the account, and as described above, is usually equal to 1% of the contract amount. This can be saved by choosing a plan where 100% of the account opening fee is waived or reduced if, for example, you only have to pay half or a monthly deposit at the time of opening the account. In our example above, the monthly deposit amount is $ 20,000, and in the latter case, we also have to pay this amount as an account opening fee.
Most of the promotional conditions for home savings are, for example, that during the savings period, we cannot cancel or transfer our contract, so they are expected to be loyal to us and not to miss out on our monthly payments. It is often the case that the promotion is valid when using another product or service of a financial institution. For example, a monthly payment from a bank account should be made, even by direct debit; or have a credit card contract at the same time as your home savings contract; if you have a pension or life insurance policy, you can get the benefit if you have them. Financial institutions may also require you to apply for an SMS service or Internet bank, or we have a condition whereby we undertake to send us advertisements by telephone, e-mail and other contact details.
Therefore, it is worthwhile to look at home saving designs as we have to consider many different aspects in order to find the most suitable offer for us.