Austrian loans are not only so popular in Hungary because the Hungarian banking system is not able to function as fairly as some Western banks. In the case of Western European or American banks, it is a bad thing to talk about fairness, since the outbreak of the 2008 global crisis was solely the responsibility of the banks.
It’s interesting thought
Indeed, European banks have only been hit by the crisis, but the leaders of the big banks on the old continent acted as stomachily as they did in the New World. Huge bonuses were also raised in the midst of the crisis – in the end, the English government had to legislate against such backhand practices.
That the Western banks that put their feet to us here are much more jaded than they are in their home country. The reason for this is clearly the soft state regulation that allows banks to trickle freely. However, with the opening of the world, Hungarian citizens are now able to borrow from Austrian banks on Austrian terms.
Nowadays we are talking about more specific mortgage type loans. The point of the Austrian mortgage loan is that the debtor waives the right to own something of considerable value in the event that the lender could not repay the loan to a financial institution. The Austrian bank thus enjoys full protection, as if the debtor fails to pay, he simply sells the collateral. The debtor can do no more than is usually the case, either to avenge the pledge or to take out as much money as he can, or at least partially sell it.
You should always calculate this before borrowing!
In other words, you do not have to borrow a loan appropriate to Hungarian conditions, but can benefit from more favorable Austrian conditions. By nature, mortgage loans are free to use, without invoice, without certificates. The amount of the loan will usually be half of the prudently estimated value of the property being offered as collateral.