jelzáloghitelt

Jelzáloghitel, often translated as mortgage loan, is a type of credit facility in Hungary that is secured by real estate. This means that the borrower pledges their property as collateral to the lender, typically a bank. If the borrower fails to repay the loan according to the agreed terms, the lender has the right to seize and sell the property to recover the outstanding debt.

These loans are commonly used for purchasing property, including apartments, houses, or land. They can also be used for refinancing existing loans, consolidating debts, or for other purposes, though the primary use case remains real estate acquisition. The loan amount is usually a significant portion of the property's value, and the repayment period is typically long, often spanning 10 to 30 years.

Key aspects of a jelzáloghitel include the interest rate, which can be fixed or variable, the loan term, the loan-to-value ratio (the proportion of the property's value that can be borrowed), and various fees associated with the loan origination and servicing. Borrowers are required to undergo a credit assessment to determine their ability to repay the loan. The property itself is also valued to establish the collateral's worth. Lenders carefully assess the risks involved before approving a jelzáloghitel.