Borrowers Face Dire Impact of Rising Loan Rates in Hungary

  • 25 Apr 2022 11:49 AM
  • Hungary Around the Clock
Borrowers Face Dire Impact of Rising Loan Rates in Hungary
Hungarian mortgage rates have surged in recent months due to rising inflation and the MNB’s subsequent monetary tightening, which means that the size of loans that borrowers can take out under the MNB debt cap rules has declined significantly in one year, Portfolio writes in an analysis.

The unweighted average interest rate of variable-rate housing loans rose to 9.2% in early April, with the five-year benchmark rate climbing to 6.2% and that of the 10-year rate to 6.3%, according to

Home loans are likely to become more expensive with interbank rates climbing higher and further rate hikes in the pipeline.

Rising home loans and higher monthly instalments mean that customers with the average net income of Ft 311,000 can take out an Ft 18.8 million, 20-year fixed-rate home loan at present, compared to Ft 24.1 million a year ago.

The same figures for borrowers with salaries close to the median income of Ft 250,000 are Ft 15.1 million and Ft 19.4 million respectively.

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Around the Clock

Since 1995 Hungary Around the Clock has proven to be one of the most comprehensive sources of daily English-language news about Hungary. It covers ongoing domestic politics and foreign relations, as well as business and economic matters. For a free trial of HATC visit and click on 'Free Trial Subscription’.

Explore More Reports