ADVERTISEMENT

New home loan volume up to 50% in 2015

Sustainability

Image by Pixabay

Volume of new home loans grew to around 50% last year, the National Bank of Hungary (MNB) said in its newly launched Housing Market Report yesterday, Hungarian news agency reported.

In the second half of the year, the value of new home loan contracts rose 36% to HUF 192 billion. 

Outlays were up in spite of the introduction of new caps on loan-to-value (LTV) and payment-to-income ratios.

Only 8% of new home loan contracts were for new dwellings in the last quarter of the year.

The ratio of state subsidized forint loans fell, accounting for only 14% of newly contracted housing loans at the end of the period under review.

The report said that home loan conditions were still “tight” and attributed the increase in outlays mostly to rising demand.

It noted that in 2014, one-fifth of homeowners owed money on their homes. At the end of 2015, lendersʼ stock of home loans stood at HUF 3 trillion.

At the beginning of 2014, the median home loan was HUF 3 million, but by the end of 2015 it reached HUF 4 mln. The average APR for new disbursements decreased by 0.3 of a percentage point to 5.8% in H2 of last year.

ADVERTISEMENT

Consumer, business confidence reach 2-year high - GKI Analysis

Consumer, business confidence reach 2-year high - GKI

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.