The home mortgage market is developing favorably in terms of lending and secured loans, according to Savings Gain Bank’s latest analysis, which summarizes the current situation of the home mortgage market based on official central bank data and its own statistics.
In the first nine months of the year, banks operating in the Hungarian market concluded nearly $ 642 billion in home mortgage contracts, an increase of 36 per cent year- on- year. According to Anne Putat, an expert at Savings Gain Bank , the September data suggest that the expansion is permanent and significant . “Intensive housing price increases over the last 4 years and rising wages have all contributed to an increase in borrowing.” the specialist added.
Doubling in safe terrain
The amount of legrizikósabb, known as floating rate housing loans amounted to $ 121.5 in the first nine months of the year, a 36 percent drop. At the same time, the amount of home loans guaranteeing a fixed installment for 5 to 10 years more than doubled to nearly $ 200 billion, while fixed repayment plans for more than 10 years increased by 36 percent to $ 41.5 billion in nine months. “It is obvious from the data that an increasing number of home loan borrowers do not ask the most sensitive to interest rate changes, making risky variable-rate constructs. Increasingly prefer a predictable, guaranteeing a fixed multi-year amortization, including appropriate classification system of the central bank’s consumer-friendly home loans” Anne Putat said.
Up to 5 million difference
According to Savings Gain Bank , there is increasing competition in the market for fixed-term mortgages, but there are still significant differences between bank offers . At the beginning of November, the most favorable of the 10 million forints, 20-year mortgages and fixed-term mortgages are monthly payments of 66-69 thousand forints, while the most expensive ones can cost 80-88 thousand forints per month. As a result, there may be a discrepancy of up to $ 5 million in the total amount to be repaid . Therefore, it is definitely worthwhile to consult with credit intermediaries before borrowing , as they have an up-to-date knowledge of the entire market and can help stakeholders to make significant savings .