According to experts, home loans are up 75% and personal loans up 30% compared to 24 months ago. Interest in borrowing gradually grows, both in terms of home loans and personal loans.
Demand for credit is increasing among the population
home loans are growing at an unprecedented pace, and personal loans also peaked this year. This analysis was read in a new online statistical survey by financial experts. This year, the reporting credit institution was assessed a personal loan offer of HUF 1.3 million, which represents a 10% improvement over the previous year. Compared to 2015, it outperformed by 30%. The average value of home loans is similar to 2016, but 75% higher than 2015
In 2016, the retail credit market grew at an unprecedented rate. The change in the right direction is due to:
• Highly falling interest rates.
Let’s look at an example!
In the summer of 2012, we obtained home loans at an average interest rate of nearly 11%. In 2019, the same is 4.46%. A decrease in interest means one
- For a home loan maturing in 20 years, we now receive HUF 13 million for a monthly repayment of HUF 83,000,
- instead of the 8 million 5 years ago, which was also available for $ 83,000 a month in repayments.
Some thoughts from the expert’s opinion
The increase in the average loan amount for personal loans indicates that the income of the population has increased, and the desire to lend again. The 75% increase in mortgage lending was also supported by the rise in property prices and the appearance of subsidized loans. eg. the Family Home Creation Discount, a consumer friendly loan, and Csok 10 + 10 also contributed.
Personal loan allocations in 2019 increased 400% year-over-year. Home loan calculations increased by 480%.
The expert is of the opinion that the fact that everyone knows what credit they have when they know their credit supply plays a role in their significant growth.
Before applying for a loan, compare the terms of the loans
- Because large differences in bank offerings can be discovered. And for personal loans and home loans, there are millions of differences between the offers of credit institutions.
- The best personalized home and free use loan facility is not necessarily provided by our own bank!
According to the central bank base rate, new housing loans rose by 38% this year, an increase of HUF 297 billion compared to the previous year. Personal loans also increased by 51% to $ 142 billion.
And let’s see the built-in restrictions that no one should be afraid of over-indebtedness. Despite significant growth, over-lending is regulated by constraints. The most important of these is the “proportional installment payment”. The barrier that prevents anyone from paying more than 50% of their income. The exception is a very well-earning client whose monthly income is over HUF 400,000, who can expect a higher limit of up to 60%. Credit market experts are positive about these limits, which protect borrowers from the risk of over-lending.