Raiffeisen Bank certified to offer ’consumer-friendly’ home loans

MNB

Raiffeisen Bank is the latest institution to be certified to offer "consumer-friendly" home loans, the National Bank of Hungary (MNB) said on Monday, as reported by state news wire MTI.

With immediate effect, Raiffeisen is able to offer certified five-year loans, based on information available on the MNBʼs dedicated website.

The central bank recently rolled out the consumer-friendly home loan certification to counter high interest margins and a low rate of borrower refinancing. Lenders have been able to apply for the certification since June 1.

In addition to Raiffeisen, products offered by OTP Mortgage Bank, MKB Bank, K&H Bank, Erste, FHB Commercial Bank and 50 members of Hungaryʼs integrated savings cooperatives have been certified.

To become certified, banks must cap their home loan lending margins at 350 bps, origination fees at 0.75% or HUF 150,000, and early repayment fees at 1%, or 0% in the case of repayment from home savings bank accounts. Lenders must also make potential borrowers an irrevocable loan offer when they inquire at a branch.

ADVERTISEMENT

Pandemic has only moderate impact on big companies Analysis

Pandemic has only moderate impact on big companies

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

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.