Demand for loans will continue to be strong in the next period: housing loans may spike with the expansion of CSOK, and the personal loans market may be rescheduled by the government’s baby loan.
The year started off very well in the retail credit market
Which has been expanding dynamically since last year, according to Good Finance’s official central bank data for the real estate.com money market business. Banks granted new personal loans and home loans totaling HUF 95.85 billion in January, an increase of 14% yoy. At the same time, it also means that in January , banks provided personal loans and home loans totaling more than HUF 4 billion per business day .
The amount of new home loans was close to HUF 62 billion in January, 9 per cent higher than in January 2018 . New personal loans in excess of HUF 34 billion in January represent a 25 percent increase. For personal loans and home loans, the highest figure in the last 10 years is January. Erika Trencsán, senior financial expert at Good Finance, said: “The benchmark for retail loans is that the benchmark is already high, with personal loans growing at an annual rate of 81 percent in January 2018 and 35 percent at home loans. ” .
Floating-rate home loans have been pushed back
In January, the most volatile floating rate instruments in the market almost disappeared . They were disbursed in the amount of only HUF 2.7 billion, which is only 4 percent of the total January mortgage lending. Good Finance’s expert pointed out two things: “On the one hand, last October’s tightening of the central bank pushed the population toward fixed-rate loans , and on the other hand, homeowners are aware that a potential increase in floating-rate expenses. “
Demand for home loans and personal loans may remain higher this year , according to a Good Finance expert. With home loans, expanding the Family Home Creation Discount can bring new momentum, and increasing household consumption can help with personal loans . According to Erika Trencsán, the government’s baby-loan program can fundamentally reorganize the market for the latter, which means free-of-charge credit facilities of HUF 10 million for the affected parties and even interest-free.
Hungary’s first credit comparison site
Good Financewas launched in 2011 as Hungary’s first credit comparison site. At Good Finance, you can easily compare offers from more than 30 banks, helping clients choose the optimal solution for their clients, who are familiar with internal banking processes. In 2015, the site became part of the property.com group, a market leader in real estate advertising. As part of the corporate mission, Good Finance, as an independent, ethical player, provides a complete, transparent view of the banking and financial products market to help people reach their goals efficiently, saving money and time.