Pledge to catch up with region cut by half mortgage surcharge

The time has come to lower the mortgage spread in Hungary, as this cost ratio is still twice as high as in our region – we could read it in an interview published Wednesday by World Bank Deputy Governor Márton Nagy.

According to the Vice-President, low interest rates and government programs (CSOK) also support the rapid rise of home loans, but he believes that particular attention should be paid to ensuring that lending is sound.

The key issue is the size of the spread


since the credit spread is around five percentage points in the Hungarian housing market today, which needs to be reduced, as it is twice as high as in the region.

Therefore, in order to reduce interest rate spreads, market participants need to increase price competition between banks by reducing the cost of borrowing, reducing time consuming and removing administrative burdens, which will encourage bank switching. .

Of course, it is good to have an independent credit broker for bank switching who is looking for the best solution available to the customer, as this is not expected from your account-keeping bank, and the bankers will always be guided by the banks if their business interests so require.

Although the household sector became a net borrower in the second half of 2016, this year the overall loan portfolio may still decline. The central bank expects growth of over 1% in 2017 and around 5% in 2018.

And what about the wage increases?


Márton Nagy explained that while inflation may be boosted by higher income driven consumption, inflation will remain below the 3% target this year and next and is expected to reach it only in the first half of 2018.

Meanwhile, GDP growth is projected to be around 3.6% in 2017, and growth of up to 4% is not excluded, providing an additional opportunity to maintain persistently loose monetary conditions.

Thinking of building or buying a home 


Therefore, if you are thinking of building or buying a home and would like to get more detailed information about the terms of use of CSOK or 5% VAT, and if you are thinking of buying a home loan and negotiating with banks as an equal partner, , get help from your Gabriel Oak credit broker!

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