Erste home loan products certified ʼconsumer-friendlyʼ by MNB
Erste Bank Hungary will start offering home loans certified as "consumer-friendly" by the National Bank of Hungary (MNB) from today, the lenderʼs head of product management said, according to Hungarian new agency MTI.
Erste will offer certified three-, five- and ten-year loans for building and buying homes or refinancing existing credit, said Emese Buocz.
The MNB recently rolled out the consumer-friendly home loan certification to counter high interest margins and a low rate of borrower refinancing. Lenders could apply for the certification from June 1.
In addition to Erste, products offered by FHB Commercial Bank and 50 members of Hungaryʼs integrated savings cooperatives have also been certified.
To become certified, banks must cap their home loan lending margins at 350 bp, origination fees at 0.75% or HUF 150,000, and early repayment fees at 1% or, in the case of repayment from home savings bank accounts, 0%. Lenders must also make potential borrowers an irrevocable loan offer when they inquire at a branch.
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