At the beginning of August, according to Good Finance data, the monthly installment of the 10 million HUF mortgage guaranteeing the cheapest and most expensive fixed repayment for 20 years was almost 20 thousand HUF.
Hungarian housing market closed strong half-year: Banks signed nearly $ 400 billion in new home loan agreements in the first six months, up 36 percent year-on-year, according to Good Finance’s official central bank and its own data , floating interest rates and new, more secure fixed-term mortgages.
Good Credit, the Good Finance expert first six years of the home loan market, he said. “The half-year figures is actually not surprising, the data coming in every month has seen have been to plenty of growth above 30 per cent will be the new home loan market The rise in part to the housing market recovery, this is due to the demand for second-hand and new homes. The expansion of the state housing subsidy system and the significant increase in real net wages also play a role. “
Risky loans are getting smaller and smaller
Within new home loans , the proportion of long-term, fixed-term repayment plans with a fixed maturity of more than one year is increasing, while those with a higher risk of floating interest rates are increasingly diminished. In January, the share of floating rate mortgages within the overall market was still 32 percent, before falling month by month. In June it was only 16 percent. That is, in June, borrowers only chose variable interest rates for every sixth home loan.
In parallel, the proportion of mortgage loans with a fixed repayment period of at least one year is increasing. In the first half of the year they covered 78 percent of the nearly HUF 400 billion market. E-bank said that it is worth distinguishing between fixed-term mortgages , as those that are fixed for at least 10 years or until the end of the term are more secure than 1-5 and 5-10 years. They guarantee the same monthly expenditure in the event of any change in interest rates , and, due to the international economic environment, mortgage rates may rise in the next period.
It doesn’t matter: 66 thousand forints or 85 thousand forints per month
Compiling Good Finance draws attention to the fact that, as with all loans, it is worthwhile to thoroughly review the market supply before borrowing for fixed-term home loans for more than 10 years. At the beginning of August, according to Good Finance, the monthly repayment installment of the 20-year, 10-million-forint fixed-rate mortgage loans was 66-67 thousand forints, while the most expensive ones exceeded 85 thousand forints.
This could amount to a difference of up to $ 4.5 million in total repayment
E-bank expects that in the next period, consumer-friendly home loans , including fixed mortgage repayments for a minimum of 10 years or until the end of their term, will gain an increasing share of the entire housing market.