Interest rate monitor: home loan rates are even more favorable

Those who want to take out a home loan in April may experience better interest rates than before. And judging by the amount of home loans the banks have made in the first two months of the year, almost everyone wants to squeeze in cheap money.

The enthusiasm for housing loans continued in February

The enthusiasm for housing loans continued in February

According to central bank data, Hungarian financial institutions disbursed HUF 60.7 billion from their loans. This continued the very strong start of the year in the credit market, with the disbursements in January amounting to more than HUF 122 billion for housing purposes in Hungary, compared to HUF 109.4 billion in the first two months of 2018.

Long-term loans had a complete victory over floating rate loans in February: 59 billion of the 60.7 billion forints were backed by a one-year rate fixation. True, the APR on these products may initially be slightly higher than their floating rate counterparts, for example 5.07 percent in February.

Not surprisingly, the average APR has declined over the past four months, dropping to 5.02 percent in February from 5.12 percent a month earlier, according to Good Finance’s latest interest rate watch.

Does it matter?

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March and early April show a similar picture in mortgage rates, according to Good Finance. Mostly, we see some increase in floating rate BUBOR-linked loans, caused by the easiest tightening of the central bank. For 3-month interest rate plans, the benchmark rose from 0.15 percent to 0.19 percent.

The most significant changes in the financial portal have been the following:
Recently, Goodbank Bank has come up with a new home loan: after 5 and 10 years of fixed interest rate products, we can now have a 15-year fix.

At Budapest Bank, interest rates on 10-year consumer-friendly housing loans fell sharply to HUF 10 million, down from 4.59% to 6.19%. However, it is more difficult to take advantage of the interest rate discount at the bank: it raised the minimum monthly credit required for this in case of market mortgages from HUF 110,000 to HUF 130,000. In addition, the maximum amount of credit available for consumer-friendly home loans has increased from HUF 45 million to HUF 55 million.

The preferential interest rate on MKB Bank’s interest-bearing mortgage loan fell from 4.53 percent to 4.38 percent, while the overnight mortgage loan dropped from 5.53 percent to 5.38 percent.

You don’t have to go far for the best deals

You don

According to Good Finance’s calculations, at the beginning of April we can find a specific market offer with a APR of up to 4.58% for a 15-year term with a maturity of 10 years. This requires at least a net income of $ 200,000 and a monthly installment payment of $ 94,816.

If you take the risk of a rising installment installment and choose only a one-year interest period, you can do even better – just in the beginning: at 2.81% APR, you can find a loan with the above conditions and the installment installment is $ 81,458.

At the same time, Good Finance advises that we should focus on security as the monetary tightening approaches.

Of course, as always, it is worthwhile to compare the offers of the banks before choosing a loan and to choose from the best loans, which comes with a loan calculator. According to the Credit Comparison Portal, young families and families with many children are well advised to make a decision as soon as baby benefits are available on more favorable terms, even interest-free, and we can also apply for rural CSOK, which can also help us achieve our housing goals.

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