Creditworthiness is much easier for banks to give to employees in the status of employees than for entrepreneurs. KATA is a very favorable form of taxation, but less easy to obtain.
It affects hundreds of thousands of entrepreneurs
Can be beneficial if our business is profitable enough. However, only 60 percent of deferred income is considered as a fixed income that can be used, for example, to take out a home loan. The reason for this is that NAV provides a proof of income at this rate.
Income is very important because it defines the maximum amount of the installment and thus fundamentally affects the total amount of credit available. Of course, you can get longer credit with lower monthly installments, but it’s good to know that the longer the repayment period, the more you pay.
Good Finance is tightening and reducing opportunities
As the Good Finance (earnings-to-repayment installment ratio) limit goes down from July 1 this year, meaning that you will be able to borrow less than the floating rate versions, it is very important to be able to maximize your income when applying for a loan. And with catastrophes, lenders are less trustworthy.
For example, if someone shows a net income of 400,000 forints as an employee, he or she can claim much more than someone who bills for $ 400,000 as an entrepreneur – no matter how much revenue he or she shows up.
It is very important that our judgment may vary according to which bank we turn to. In fact, financial institutions are treated differently from NAV-certified income.
We can do much better if we find a good bank
Some calculate the total amount and calculate the maximum monthly installment accordingly.
Other banks reduce this income by the amount of the catapult tax and use it to calculate the amount of credit that can be borrowed and the maximum monthly repayment.
There are banks that count differently and deduct even more, but it is not clear how cat income is ‘recalculated’.
Of course, the first type of banks are the best in terms of borrowing. After all, both the tax deduction and the ‘secret formula’ reduction show less income as a result.
You can get a home loan or a personal loan – in theory, because the bank doesn’t have to accept it – if your income reaches the minimum wage. So that should be the amount the end result is, so it’s best if the bank accepts as much of our income as possible.