Almost 15% of households paying off home loans
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About 14.5% of Hungarian households – some 560,000 in absolute terms – are currently paying off home loans, a survey conducted by the Central Statistical Office (KSH) shows, according to Hungarian news agency MTI.
About 380,000 of the total outstanding home loans were used to purchase or build a home, while 196,000 were used for home renovations.
Households paid on average HUF 45,000 a month in repayment installments on their home loans, according to the survey which was conducted late last year. Installments averaged HUF 51,000 per month for home purchase loans and HUF 30,000 per month for renovation loans.
Since the year 2000, some 690,000 households have taken out 760,000 home loans of over HUF 1 million. The average run of the loans was a little more than 17 years.
About 68% of these home loans are still being paid off, while borrowers have defaulted on repayment of 2% of the total and repayments have stopped on 5%. About 15% of the home loans have matured, while 10% were repaid early under a government scheme that favored borrowers with preferential exchange rates on FX loans.
The KSH found that one-fifth of households with home loans had received some kind of repayment relief during the period.
About 57% of home loans taken out since 2000 were denominated in forints, and 43% in foreign currency, mostly Swiss francs.
Nearly all retail FX loans in Hungary have since been phased out.
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