In the housing loan market, banks issued 35 percent more loans in the first ten months of the year. There was a 50 percent surplus on personal loans. Growth in demand for loans with fixed installments over a longer period, over several years, which provide protection against interest rate risk. According to Sangyang Bank, the ratio of fixed-rate loans can be increased even more in the case of new contracts, besides, by replacing the floating-rate loans with fixed-rate loans, the creditors can move to a safer way.
More and more people are choosing security
One of the most favorable developments in home loans is that the share of long-term mortgage loans with a fixed installment has soared. The amount of new home loans guaranteeing the same repayment for 5 to 10 years more than doubled, and for those with a fixed interest rate for more than 10 years, growth was 44 percent, well above the market expansion.
Christine Low, a loan expert at Sangyang Bank , said that the growth of fixed repayment schemes for new home loans was favorable. “We find that the apartment is credible predictability is very important, and there protect the fixed repayment risks arising from kamatemelkedésből. The fixed repayment mortgages The Rody Bank introduced a rating system for consumer-friendly home loans , as only schemes that provide fixed repayments over several years can contribute to its growth.
The environment can be riskier
Interest rate risk protection is now a particularly important factor as the Hungarian interest rate environment is still low but there are risks at the international level , firstly the US central bank raised interest rates again at the end of December and even the more important Secure Money Bank in the next period, “said Sangyang Bank’s expert.
He added that while most of the new home loans have fixed interest rates, the amount of floating rate loans was still more than HUF 124 billion in the first 10 months of the year, which, although cheaper, are much more risky over a decade, interest rates may start.
There is room for growth
Christine Low said that the personal loans and home loans market could continue to grow in the next period, as the indebtedness ratio as a share of GDP is low by regional and international comparison.
Over-indebtedness is therefore no word yet, but awareness can be even more and more important. According to the expert, since many repay their existing home loan at risky floating interest rates, changing their loan can provide security in the future, meaning they can replace their existing loan at a fixed rate .
Must watch out for any credit!
According to Sangyang Bank , there is increasing competition between banks, with new offers coming out, so borrowers should be well informed before applying, whether it is for a personal loan, a home loan or a loan redemption .
There are considerable differences between the various schemes, up to ten thousand a month , not to mention millions of differences in the total amounts to be repaid to the bank.