In 2008, the peak year, so many home loans fell!

July 22, 2019 by No Comments

By June 2018, the population had taken out as many home loans as in 2008, which is called the peak year in the history of home loans in Hungary. This is a $ 400 billion home loan.

Loans at low interest rates

Loans at low interest rates

So much has changed that forint loans are being replaced by forint loans at low interest rates under regulated conditions, which excludes the great possibility of risks! No need to worry, interest rates are still low, and it is worth taking out a home loan if you have a home.
These are housing market statistics, but let’s look at some very good home loan deals!

2008 was the peak of foreign currency lending, and in the first half of the year we borrowed HUF 408 billion.


Now the same amount of home loans has been reduced, and households borrowed HUF 400 billion in the first half of the year as well. This is more than six times the bottom of 2013, with a 35% year-over-year increase.

Due to the average loan amount and the growth of the housing market, it is not surprising that the interest of the Hungarian population in borrowing is growing, whether it is personal loans or home loans, but we take the most of them. By June, banks had already signed nearly $ 85 billion in home mortgages, surpassing the amount they raised in the same month of 2008.

Despite the strong market tensions we heard in May-June, when home loans became more expensive, even this did not stop home lending. It is true that these interest rate increases are only true for short-term loans, as 5-year and 10-year loans have become slightly cheaper. This is not the effect of the statistical composition because it is consistent with the practice that many banks have not increased their 5 or 10 year mortgage rates!

Much more visible is the decline in interest rates on floating rate loans, now fixed rate home loans are leading!


Thanks to central bank-rated consumer-friendly home loans, the ever-lower interest rate on fixed-rate loans has led the population to spectacularly opt for fixed-rate, more secure home loans to achieve their home goals. Of the 10 home lenders, 4 choose fixed installments for more than 5 years, only one in six home borrowers has applied for a 3, 6, or 12-month home loan.

We still find short-term offers today, for example. Good Lender and GFI Bank offer mortgages below 3%, with income above 250 thousand HUF. To do this, they have to take a short interest period, which means that the installment payment can change within a year.

Loans with interest rates of 3 and 5 years are cheaper than loans with a fixed term of 10, 15 or 20 years. 3-year and 5-year home loans are available at interest rates starting at around 3.5%. Loans fixed for 10, 15 or even 20 years today offer the greatest security with the predictability of monthly repayments.

What’s really safe is that for loans with a fixed maturity of at least 10 years, interest rates start around 4%.
Currently, the best construction is offered by Good Finance Loans.

For example:
“If we take a 10 million HUF home loan for a used home for 20 years with an income of over 250 thousand HUF, we can already have a monthly installment of up to 52 thousand HUF, which can only be moved by the volatility of BUBOR.”

If you are looking for security, you need to count on a repayment installment of around HUF 58,000, but even more at HUF 61,000, in order to get the most favorable home loans!

In the future, long-term fixed mortgage loans such as rating systems designed for consumer-friendly qualified home loans will increasingly take over the market, credit experts expect.

If you would like to take out a home loan, you are interested in the possibilities of GFIC, you are interested in qualified loans, call our credit brokerage experts to help you with your decision!

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