Fresh Record in Hungary for New Home Loan Outlays
- 2 Jun 2022 7:45 AM
- Hungary Matters
Households rushed to take out home loans in April before the financing costs of new mortgage loans rose further, according to the latest figures from the MNB.
New outlays for housing loans surged 45% year-on-year to a record high Ft 145 billion, exceeding the record set in March by 6.6%.
New home loans accounted for 47% of the total volume, due to the MNB’s popular subsidised Green Mortgage lending scheme, which offers very favourable rates.
For similar reasons and thanks to the government home subsidy scheme CSOK, subsidised loans accounted for 51% of the total volume and 57% of the loans were set at a fixed rate.
Banks expect demand for housing loans to subside with the phasing-out of the MNB’s loan programme and rising funding costs, but also due to the overvalued property market.
The stock of outstanding retail loans increased by 10.4% year-on-year to Ft 9.3 trillion by the end of April.
Mortgage loans made up just a little more than half of the stock, at Ft 4.7 billion, up 14% year-on-year.
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