By June 1, 2018, consumer-friendly home loans could be as much as HUF 100 billion. The average maturity is 16 years and the average loan amount is HUF 10.8 million. Customers look at their loans at a fixed rate with good insight, most often with a 5-year term. Disbursements are increasing and their value is significant.
Here are some examples:
In March 2018, banks issued new consumer-friendly home loans worth nearly HUF 18 billion, and in April about HUF 21 billion, Hungarian National Bank (MNB) said.
Gradually increasing disbursements suggest that this great type of consumer-friendly credit is popular, well-established, and by June 1, $ 100 billion had been raised.
The above is a bit more detailed:
- An average customer who applied for a consumer friendly home loan took out a $ 10.81 million loan for a 16.5 year term.
- This average loan amount is 55.5% of the value of the real estate valued as collateral.
- Consumers looking for consumer-friendly home loans accounted for 44% of families in their 40s, 28% for those over 40, and 18% for those in their 20s.
Fixed rate loans are the preferred form of retail credit, with three quarters or 75% choosing it.
MNB-certified consumer-friendly loans are increasingly available to demanding families in multiple forms and formats. Today, 11 banks and 12 savings cooperatives offer certified products.
The most popular consumer-friendly home loan, 55% of the portfolio trusts products with a fixed term of 5 years. The proportion of consumer-friendly loans with an interest rate of 10 years was around 25%, that of 3-year-olds was 13%, and 7% chose a fixed-term loan.
All in all, the indicators are shifting towards fixed-rate loans and are very well suited to those who choose this form of credit, as predictability and security are unmatched in today’s home loan market. If you would like to take out a home loan or are seriously interested in the possibilities of consumer-friendly loans, call our credit brokerage experts to help you make a professional decision!