In 2017, we buy more homes than without a loan. Compared to the previous year, banks gave 23% more home loans to buy used homes. In the first half of 2017, HUF 195 billion was used, and 53,000 used homes were sold and more than half of the sales were loaned.
Average loan amount and maturity
The average loan for used homes was HUF 6.4 million with a 16-year maturity. The repayment installment for this is an average of 5.6 percent of the total loan rate for home loans with a fixed interest rate of at least one year . However, the housing loan market also has housing loans with a 3.5 to 4 percent THM.
Fixed installment loans
For several years, fixed-term home loan loans are safer and more predictable because the monthly repayment of the loan remains the same even if, for example, banks change interest rates due to changes in the economic environment. This is certainly worth considering for home buyers before indebted to 10-15 years.
But also the floating rate loan became attractive
There are more and more borrowers who choose the short interest period because they are attracted by the current 2.5 percent interest rate. At the same time, this option is primarily used by wealthier customers. They hope that interest rates will remain low for a long time.
If we look at the monthly installments, then a 10 million HUF, 5-year fixed loan for a 20-year period amounts to about 60 thousand HUF a month for the loan taker . However, a floating rate loan means more favorable monthly repayment now: besides the same parameters, a monthly repayment installment of about 53 thousand forints should be paid.
Banks compete for customers
Banks are getting more and more favorable loans : no bank offers a fixed loan for 5 years for interest rates below 4%. In addition , most banks are making their bids more attractive with promotions , which means that they can get credit even without initial costs. In addition, there were also promotions on the market where the customer would receive a monthly repayment installment of up to HUF 100,000. In addition, customers can continue to benefit from interest relief from most banks if they undertake to pay their debts, ie to a certain degree of commitment to the bank.
Consumer friendly credit
At the same time, there are also consumer-friendly loans alongside good deals. Consumer-friendly home loans differ fundamentally from normal market loans, such as pre-repayment and early repayment, or, for example, the home coffers can be opened free of charge . It may also be an important factor for many to have credit assessment and disbursement tied to a specific time limit: banks take 15 business days for credit assessment, 2 days for disbursement, thus also predicting the date of moving.
But the most important factor for customers is that the installer is fixed for at least 3 years. Of course, it can be longer as well, as there are 5, 15 years old or even fixed installments available, so anyone who strives for security will find a consumer friendly credit.
Because of the above – again – we are borrowing more and more boldly
While one or two years ago we have heard that people are extremely cautious when it comes to borrowing, and this is reflected in the amount of money raised, the amount of 10-15 or even 20 million forints is now rare. Loans are often used to buy homes that are still in use, but the volume of loans for construction and purchase of new homes has also increased.
FX-based home loans almost disappeared , but at the end of 2014, even 52 percent of the stock was still such a loan.
Within the total loan portfolio, 23 percent are state-supported, and 77 percent are market loans.