Wednesday, June 03, 2020

Conditions on consumer-friendly home loans are changing!

Increasing mortgage rates and interest rates is in the interest of both parties, the client and the bank, so that these periodic changes do not occur suddenly or unstoppably!

To this end, the MNB introduced qualifying consumer-friendly home loans, which banks applied for, after which they could obtain a rating to sell their products. This product has brought its hopes!

Terms and conditions for qualified consumer-friendly home loans will change

Terms and conditions for qualified consumer-friendly home loans will change

  • so far, we have considered fixed rate loans for 3, 5, 10, 15 years and fixed rate loans as consumer friendly loans.
  • As of October 1, 2018, the term of the qualifying loan can only be 5, 10, 15 years, or until the end of the term it can be fixed interest rate.

“Banks can no longer apply for a qualifying consumer-friendly home loan with a 3-year term loan.”

In any case, it is in the interest of the population to have a longer and fixed interest rate as your interest rates rise! The National Bank of Hungary also strives to bring fixed loans to the fore! So far, the minimum rating for the rating has been a 3-year interest period.

Excluding the 3-year interest-rate period


From the competition may favor competition, as competition between the 5-year interest-rate periods has already been decided, which will intensify after the introduction of the new rules.

If you are applying for a home loan with a term of 10, 15 or 20 years, it is not safe at all to have a 3 year interest rate (3 year interest rate period) on the security of your home loan and the repayment of the installment! With such a long maturity, even a 5 year maturity is a bold choice!

It also sounds very convincing that as of August 31, 2018, 10 and 15 year loans are 0.5 to 1.5 percentage points more expensive per annum compared to 5 years.

All solutions need to be carefully considered


Depending on your financial means and your living situation, there are several options for home loans.

Therefore, please do not hesitate to contact our credit specialists and credit brokers, who will provide you with extensive information on available, personalized credit options.

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