Either GFIC or Baby Waiting! We have explored the options:
We also received the result by surprise!
It is also worth it for business owners with 3 children to apply for a new baby loan!
There are differences, let’s look at:
Baby Pregnancy Support is available for children born after July 1, 2019, and can be used for up to 3 years.
In our case, all three couples want a total of three children, and we assume that all three couples have already raised $ 10 million in GFIC support. A GFIC loan can only be taken after the grant but is not required!
3 examples of opportunities! The difference in the number of children born is the difference!
A: The couple has no children and wants three children
B: the couple has one child and wants two more
C: the couple have two children and want one more
All three couples have a $ 10 million opportunity.
The three children arrive after 1, 4, and 7 years from the date of application (where there are children already, the first numbers are relevant, ie the earlier dates).
In all three cases, it may not be worth having a baby!
When there is no child yet, there is no opportunity.
In the first case, the baby loan is definitely the winner! If you have three children – and babies are born – the baby loan becomes free cash.
If the couple borrows the baby’s loan for a term of 20 years, the installment will be HUF 41,667. The first child arrives 1 year after the request, which means that the installment has to be paid for 12 months. Thus, the couple will repay $ 500,000.
That’s all it costs to pay if everything goes according to plan. The first child comes in, the payment is suspended before they should be paid, the next child comes in, a suspension and a 30% deduction, and then the third child arrives, because of which everything is released. That is, in the seventh year, they can call themselves bankrupt.
In case of a GFIC loan, the repayment amount will be HUF 55,460 for 20 years, with a 3% interest rate, but the child will come – so far they have already paid HUF 665,515 – more than in the case of a baby loan. However, even after the first child, the installment will not change, so they will pay another $ 1,996,551 over the next three years. With the arrival of the 2nd child, 1 million will be forgiven, so the monthly payment will be HUF 48,723, which will also be paid monthly for 3 years. In the seventh year the third child comes, and then they release HUF 4 million, which means the repayment will be HUF 7,014, and during the whole term they have paid a total of HUF 5,187,519.
If there is one and two are coming:
The baby will be raised 10 million, the repayment will be 14,667 HUF, and will pay 500 thousand until the first child. Then the payment is suspended for three years, the second child comes, and then the salary is also suspended for another three years. “But the second child was also the third to fulfill their purpose, which is to be paid from the seventh year.” There will be $ 27,792, which if paid for 10 years, a total of $ 6,836,500 has been paid over 26 years (including twice 3 suspended payments).
They need GFIC. The first new child arrives – however, since this is the second child in total, the repayment is immediately reduced to HUF 49,520 already after the first year, because the state has forgiven the capital of HUF 1 million. In Year 4 comes the second new child, the third child in the family. At this point, another 4 million will be released, and the repayment will be $ 23,263. Over a 20 year period, they will repay a total of $ 6,937,834. Here’s a little difference, but the baby wins! The longer the babies arrive, the better the balance is for the baby.
Since GFIC includes children who have already arrived, it is clear that if there are two children, only the GFIC credit is worth it.
If we have 2 existing children, the baby loan will be repaid during the 23 years and the state will not let a penny out of debt.
However, with the first new child, the GFIC loan releases $ 4 million, so we pay off the loan with a down payment of HUF 32,422 for 19 years. The total repayment, plus interest, will be $ 8,057,733. Here too, it is debatable whether GFIC credit is worth more.
All in all the baby is a winner, though the two constructions can be chosen in parallel! But if there are no three new children – we are easily indebted.
Under different conditions, if the children are not born, the “punishment” items come into effect. There is a possibility of prepayment and final repayment, so you do not have to pay any loan during the entire term.
All the information about a new family home improvement discount, baby-sitting and home loans is available in one place upon request. We answer individual cases, explore the most important practical issues, and help adjust to the new GFIC.
Call our credit broker, fill out the form and we will call you back!