A long-seen competition has emerged between domestic banks, which successively reduce loan interest rates, mainly for home loans. According to analysts, if lending picks up, it is good for banks, customers, and the construction industry, which is one of the driving forces of the economy.
From January, you can take out a home loan with an interest rate of around 6.5 percent, i.e. APR. This shows that
banks are willing to make very serious concessions in the competition for customers,
since they significantly went below the interest ceiling with their offers.
The interest rate ceiling, which was first set at 8.5 percent, was introduced on October 9 last year at the government's instigation, because lending fell drastically, as evidenced by the fact that in the first three quarters of 2023, 60 percent fewer people applied for home loans than a year earlier. Because of this, the number of home purchases decreased drastically, which brought with it the collapse of the construction industry.
In order to speed up housing lending, the 8.5 percent ceiling was already reduced to 7.3 percent as of January.
Which, in turn, started an unprecedented competition between banks, as a result of which financial institutions are applying with lower and lower interest rates.
"Low interest rates are good for banks, as home loans become more attractive and they can sell more of them. It is also good for customers, since more people can afford to take out home loans, which will have a lower repayment burden. For example, those who took out their home loan before the first interest rate ceiling of 8.5 percent will now pay 20-25 thousand more in monthly repayments than those who now take out the same loan after the 7.3 percent interest ceiling," explained Levente Tóth, Head of Bank360 analyst.
The installment can be reduced by another tens of thousands,
if rate cuts continue. And yet they continue, as the base interest rate and inflation continue to fall. The president of the National Association of Construction Contractors (ÉVOSZ) previously said that they expect a turnaround in the real estate market at a 5 percent home loan interest rate.
"At five percent, we see the psychological limit when the population takes out high-value loans at such interest rates even for high-value construction," emphasized László Koji, president of ÉVOSZ.
Several financial experts believe that it may already be 5 percent in the spring, so they recommend
those who can, wait until taking out the loan,
but in the meantime, everyone should browse the banks' offers.
But the financial institutions are not only reducing the interest rates on home loans, but also the additional interest rates of the tax that came into effect on January 1. The government originally set the limit at 3 percent - no higher interest can be charged - but now, on the third working day of the new year, several banks have gone below the limit. This can also contribute to the fact that many people use the state's help.
Source: hirado.hu
MTI Photo: Zoltán Máthé