More recent data have come to us regarding home loans. In fact, we are not surprised that the credit market continues to grow, and we continue to surpass previous numbers. Truth be told, we can’t imagine the growth right now when the Family Protection Action Plan comes into effect. But let’s not run this far, let’s see what happened in the first quarter!
Very large numbers follow
We found some interesting data on the MNB’s website. ? In the first quarter of 2009, the Hungarian population borrowed more than HUF 200 billion. In just 3 months. Otherwise, this is about 18 percent higher than in the same period of 2018.
As of March, new home loans exceeded HUF 76 billion . This also pushes up the quarterly figures, as in March 2018 there was about 26 percent less new loan outsourced.
Within mortgages, fixed loans are the ones that the Hungarian population prefers. Of these loans, approximately 118 billion were selected, representing an increase of more than 194 percent over 2018. This is understandable, as in the second half of last year the MNB started to direct the population towards these loans. But why is this good?
About fixed loans
The distinct advantage of choosing a long period of interest is that despite the fact that different interest rates rise (such as the central bank base rate), the repayment of our loan does not change . For a floating rate (3 month interest rate) loan (HUF 10 million for 20 years) it costs HUF 51,828 per month at LifeKorp Bank, and HUF 58,459 for a 5 year interest period.
As interest rates on loans have been low for quite some time, it is almost certain that interest rates will rise in the next 5 years. But not for those who are now taking the extra $ 7,500 for security.
Do you want to do well not only in the short run but also in the long run? Then contact us! We will help you find the optimal solution.