Home savings: what you need to know before you make a LTP contract

The Housekeeping Contract is undoubtedly the only money market savings product that offers a state-sponsored and thus guaranteed opportunity to achieve our goals. Basically, there are no hidden tiny traps in the product and the essence of the ltp design is simple: the state adds 30% to every payment and 72,000 for each contract maximum! Now let’s look at the features of the ltp contract…

Who can make a home savings?

Who can make a home savings?

As a rule, we can make a flat deposit for ourselves or a close relative who has a tax number that has not yet been subjected to a valid home savings.

 

What happens if the homeowner dies? During the savings period, the home savings account over the deposit account and He decides on the purpose of use. You may request a change or cancellation of the beneficiary in writing at any time prior to acceptance of the allocation. Thus, in the saving period, in the event of the death of the beneficiary, the money is paid to the contractor without the succession, who may decide to continue the contract.

 

Home cleaning is a saving period

Home cleaning is a saving period

Depending on the length of the products, the cost of the account opening fee (action) or the deposit interest rate, or the mortgage interest rate on the home housing mortgage , you can choose from several options for the four home savings products.

We can choose a flat deposit contract from a very low amount to a monthly payment of 20,000 forints. In any case, the account opening fee may be set at 1% of the contractual amount (total savings + deposit interest rate + state aid + loan amount that can be adjusted), which may be different from the cashier’s own action in the direction of the client.

 

What is the state subsidy for housing savings? The amount of state aid is 30% of the total savings made in the given savings year. In the case of a private individual, a monthly state subsidy of HUF 72,000 (per contract) can be achieved with savings of HUF 20,000 per month.

 

State aid characteristics

State aid does not go to the contract every calendar year, but per year of savings (each year has its own savings) for the amount paid for that period. From the Hungarian State Treasury, the Treasury calls the state subsidy not in a month, but in the month following the savings year.

 

 

How can state support fail?

It is very important that the amount of our monthly savings for the cashier’s account is received by the cashier every month, otherwise we may even lose the part of the state subsidy.

From the point of view of state support, it is important that the customer does not pay in one amount at the end of the year. If it does so, it will be lost from a substantial part of state aid as the savings year is III. and IV. Only 25-25% of the state aid earned on the basis of the total annual savings can be claimed after the amount of own savings paid in Q4.  

 

 

Period of allocation of the flat deposit

Period of allocation of the flat deposit

The housing deposit is also governed by the law on housing and is valid uniformly with any home savings contract. This time has been set for 3 months so far, but since 2017 we have to count a 2-month allocation period if you do not require an immediate allocation.

Contract award is not equal to payment!   During the two-month allocation period, the client has to decide whether it is enough to make a home payment, state subsidy and the deposit interest on the housing, or to take advantage of the housing loan provided by the homeowner.  

By the 35th day of the allocation period (2 months), the customer needs to declare if he / she wants to allocate his / her savings during the specified allocation period, then you should determine what you want to use the contract amount for.  

Depending on the intended purpose of use, the certificates (eg: renovation / upgrading, within 120 days of the last disbursement) must be sent in advance within the 2-month allocation period (eg: sales, credit redemption) or within the statutory deadlines.

Reduce contract amount

The contract amount can be reduced at any time if the smaller amount is sufficient for us (no one checks it, so we can do it without justification).

Termination

You can cancel your apartment at any time in writing (notice period is 2 months). In the event of termination at a time earlier than four years, the Customer shall not be entitled to any State aid and interest thereon. You can only receive the deposits and the deposit interest (or, if you have concluded a contract with an account opening discount, the penny may deduct the amount of the discount). The termination is free of charge.

If the cancellation occurs more than 4 years, but before the end of the signed term, the saver will be entitled to use the time-proportional savings amount and state support. So we can use a 10-year contract in 4-5-6-8 years. in this case, we get the savings amount proportionally. The cashier has the right to deduct the amount of the discount granted pro rata temporis.

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