Certified consumer-friendly home loan outlays reach HUF 1 tln
Outlays of home loans certified "consumer-friendly" by the National Bank of Hungary (MNB) have reached HUF 1 trillion, state news wire MTI reports.
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Banks have signed more than 79,000 contracts for the certified home loans, MNB said.
MNB rolled out its consumer-friendly home loan certification in 2017 to counter high-interest margins and a low rate of borrower refinancing. To get products 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 1pc. Lenders must also make potential borrowers an irrevocable loan offer when they inquire at a branch.
MNB said APRs on certified consumer-friendly home loans are about 0.6% lower than APRs on home loans that arenʼt certified.
The average size of a certified consumer-friendly home loan is HUF 12.2 million and the average maturity 17.5 years. The average size and maturity of home loans that arenʼt certified are HUF 9 mln and 16 years, respectively, MNB said.
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