Borrowers Increasingly Using Baby-waiting Loans for Renovation
The most popular use of the so-called Baby-waiting loan is still the purchase of a home, while borrowers are also increasingly spending the money on home renovations and energy modernization, according to Duna House's analysis, writes business daily Világgazdaság.
The significant advantage of the interest-free loan, which is available for up to HUF 10 million for a maximum term of 20 years and with unchanged conditions until the end of 2024, is that it can be used for anything and does not require real estate collateral.
The company's statement cites Credipass data from 2022, according to which the largest proportion of claimants, 87.4%, spent the money on real estate-related purposes.
Some 15.6% used the support they received on real estate renovation, expansion, and modernization, while 71.8% applied for a loan with the purpose of building a home.
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