An increasing proportion of clients cover their housing goals with the Baby Váró loan, according to a survey by Duna House Finance, nearly three-quarters of applicants spend the amount of the grant they received on real estate purchases, and families are expected to take out subsidized loans of around HUF 1,000 billion throughout the year.

According to the company's statement, the loan to encourage childbearing appeared on the credit market more than two years ago, and its popularity has been unbroken ever since: according to data from the central bank, nearly HUF 1,400 billion have been disbursed to cover Babaváró loan applications since its launch in 2019. After the announcement of the program, in the January-June period of last year, for example, the loan volume amounted to about HUF 290 billion, which was 10-15 percent of the household loan portfolio.

According to a survey conducted among the clients of Duna House Finance, the most popular use of Babaváró between January and December 2021 was the purchase of an apartment, with more than 72 percent of applicants spending the loan on this. Its rate exceeded that of a year earlier by more than 10 percentage points, and in the past year, customers spent the Bababáváró subsidy on home purchases at a higher rate than ever before, based on the data, they said.

Benedikt Károly, head of PR and analysis at Duna House, said that the maximum subsidy of HUF 10 million covers on average a quarter of the purchase price of real estate in Budapest and half of it in rural areas, but in many cases it can also cover the entire purchase price. He added that since, in addition to the Babaváró subsidy, buyers in most cases also need additional money to achieve their housing goals, state-subsidized loans, loans and village loans provide a suitable alternative.

According to the company's analysis, taking into account the past quarterly averages of HUF 175 billion, by the end of the program, including the second half of 2021, families will still take out nearly HUF 1,000 billion in subsidized loans, since Baby Waiting loans can still be applied for by the end of 2022.

Source: MTI-OS

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