28 Aug

Long-term mortgages are leading the way in home loans

There has been a tremendous change in mortgage lending for 3 years, with a steady decline in fixed-term loans and a significant increase in long-term mortgages.

The public has recognized the change, with a significant proportion of home buyers, 90% of those seeking to have long-term loans of between 5 and 10 up to 15 years. 3 years ago, it was only 30% who chose this interest period. The average loan amount increased by half a million forints in the same period, while interest rates decreased by 0.6 percentage points on average.


Bucarest Bank also released the following data in its analysis

Bucarest Bank also released the following data in its analysis

  • the average disbursed loan amount at Bucarest Bank increased from HUF 9.8 million to HUF 10.5 million between January 2016 and July 2018,
  • the average monthly repayment installment during that time fell from $ 25,000 to $ 259.

The mortgage market started to grow again. The low interest rate environment, the rise in real wages and the introduction of the Family Home Creation Discount all boosted demand significantly, while real estate supply increased significantly.

It doesn’t matter which area we are looking at: the financial institution has experienced more than average growth in the districts and suburbs of South Bucarest, where the average loan amount is currently HUF 15 million. The loan amount also increased the maturity, instead of the previous average of 16 years, now it is taken on average for 17 and a half years.


Those who are thinking about buying a home can’t wait any longer

Those who are thinking about buying a home can

“Housing market analysts say price increases are slowing and financing costs are also at record lows.”

  • Today’s offer from Granite Bank: HUF 7 million, with a APR of 2.04% over a 15-year term, and a monthly repayment of HUF 44,981
  • BB promises a $ 47,606 installment at 2.13% APR;
  • At OTP Bank, the APR of 2.23% also represents a down payment of HUF 44,949.
  • K&H and ERSTE Bank are following the average of other Hungarian credit institutions. The average interest rate decreased by 0.6 percentage points at the financial institution, and the central bank base rate decreased from January 2016 to February 2018. for the period July to July, it was 0.45 percentage points.

A significant number of customers have recognized and are trying to take advantage of this opportunity.


Fixed interest

Fixed interest

According to a new analysis, at the beginning of July 2018, the cheapest fixed-term mortgages of at least 10 years, with a maturity of HUF 10 million and 20 years, were available at a full APR of less than 5%.
There are also significant differences between banks and packages in these designs, so before borrowing, it is advisable to look closely at the multitude of home loans and advise a specialist to review your financial plans.

We would also like to help with the administration, we can offer different current home loan offers without having to visit several banks. We offer free, convenient, fast, reliable administration, and our credit intermediaries are guaranteed to offer such facilities as banks.

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