Bank loans in Hungary

Perhaps I am a bit conservative, but I hate loans, better to pay from what I have if at all possible. Of course there can be situations where this is absolutely necessary but just one party benefits (your bank, be it in Hungary or another country) in Hungary interest rate levels are of course higher so if I would need a loan (mortgage typically, I would go for my home country). I understand banks that they do need collateral though.


My summary, make sure as an expat you have some capital and avoid loans (unless you can expect a big inheritance bonus or salary). Still you pay and a lot.

cdw057 wrote:

Perhaps I am a bit conservative, but I hate loans, better to pay from what I have if at all possible. Of course there can be situations where this is absolutely necessary but just one party benefits (your bank, be it in Hungary or another country) in Hungary interest rate levels are of course higher so if I would need a loan (mortgage typically, I would go for my home country). I understand banks that they do need collateral though.


My summary, make sure as an expat you have some capital and avoid loans (unless you can expect a big inheritance bonus or salary). Still you pay and a lot.

That is so true, Hungary is not a place to get a loan without some serious thought put into it.
There is no thing as claiming to go bankrupt here, they will come after you for life to get their money. No walking away from debt here.
I would say because of that situation as a outsider with no collateral behind you you will not even be considered for a loan. Maybe with a loan shark only!
If you own a property and owe anything to the association where you live or have any outstanding loans, those are paid off first before the funds are released to your account after a sale.
If you owe on your health insurance payments or even your cable bill, those are paid off first before one sees the money from any sale of property here.
They will freeze your account until bills are paid off.
In the US for example people file in court chapter 13 but no such thing offered over here.
Hungary is a place where it's best to pay up front and forget it.
We paid cash for our flat 12 years ago, had to purchase a place with funds on hand. Of course I would of loved a bigger apt. or one in a better area but cash is still king over here.
Even so if and when we decide to sell out, we have to have all bills in order before the closing of the sale or claims against the property will mess up things.
We have always paid cash if possible for everything even when we had many credit cards in the US with $10,000 to $20,000 limits on each card.
Only thing we ever got a loan for was our Ca. house, we paid 1/3rd in cash but with Ca. prices not many people can pay up front in cash.
Even my cars were paid in cash. Usually kept then under $7,000 or less in price.
Never owned a brand new car because my freedom means more to me then a car does.
Never want to have a bank own me or my life.