Can I get a home loan if I bought the property from a family member?

It is surprisingly common for an apartment to change hands within a family, but many people still apply for a home loan. When can this happen? For example, if several people inherit a property that they want to end up knowing in one hand, but it is not uncommon for a sale to take place due to divorce.

Bankmonitor’s experts have been investigating whether the buyer can get a home loan for the purchase and, if so, what pitfalls he can expect.

Basically, banks are reluctant to lend to the sale and purchase of real estate between family members, as there is a suspicion that the property is actually only changing hands on paper, so that someone can get a home loan.

Of course, there is a legal way for someone to add a so-called property to their existing property free use mortgage. In this case, the given apartment or house will be the collateral behind the loan, and the maximum amount of the loan that can be taken up will not exceed 80% of the estimated turnover value.

However, this is only a theoretical ceiling, banks usually lend a smaller part of the value.

It is definitely an advantage, however, that the amount raised in this way is free to use, but the bad news is that the interest rate here is slightly higher than for a housing loan.

Comparing the loans of 12 domestic banks Bank monitor home loan calculator For example, the monthly repayment of a HUF 10 million free-use mortgage loan with a maturity of 20 years, with a 10-year interest period and a net monthly income of HUF 300,000, starts at around HUF 73-74 thousand, while the same for a housing loan is HUF 62-65 thousand. The difference of around HUF 10,000 may seem significant in itself, but it may gain over HUF 2 million in two decades. (Because banks’ pricing varies significantly, it’s a good idea to do some thorough market research before choosing a bank. The best “target tool” for this is a home loan calculator that objectively compares the offers of financial institutions.)

However, let’s get back to the sale and its credibility. Whichever bank you choose, we will definitely ask you for information about the purpose of the sale, and of course it is important that the reason is real and viable. For example, several banks lend to the purchase of family property if it has been inherited before. In such cases, however, it is expected that the buyer himself will have a stake and that the transaction will be supplemented to 100 per cent.

It is also a common condition that there should be no credit or other encumbrance on the property, but there is a bank that insists that the repurchased owner does not live in the property after the sale, which is also intended to eliminate fictitious sales.

Can we only determine a market price?

It is an interesting question to determine the value of the property, as within a family, in many cases, an apartment or a specific part of it changes hands at a better price than the market. This in itself is not a problem, but there is a bank that in this case stipulates that the contract of sale states that the seller will not make a claim afterwards.

The lower purchase price is otherwise a property acquisition tax does not constitute an advantage, since the tax authority will determine the amount to be paid after the value it has determined.

We have previously written that some banks only lend to the sale and purchase of a family within the family if the property is unencumbered, ie there is no mortgage on it. However, this is not always an obstacle, as it is relatively easy to replace an existing loan with a loan. The encumbrances on the property must, of course, be taken into account when determining the purchase price.

We can’t get chocolates and chocolates

As it turned out above, we can get loans from several banks to buy a property bought from a family member, but if someone wants to apply for family support, we can provide him with bad news. Because the non-refundable chocolate and village chocolate One of the important conditions of the support is that the purchased property cannot belong to a close relative, which can otherwise amount to between HUF 600,000 and HUF 2,750,000, depending on the number of children. Being super cheap, up to 3% interest chocolate credit eligibility for the chocolate is a condition, we cannot use it for purchases within the family either. (The loan amount is HUF 10 million with two children and HUF 15 million with three children.)

It is not only important to find the cheapest home loan available to you if you are buying an apartment from a family member, as the difference between the cheapest and the most expensive loan can be several million forints in full repayment. Therefore, use the Bankmonitor’s detailed home loan calculator, or the following simplified loan seeker:


Source: Ingatlanhírek by ingatlanhirek.hu.

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