The home financing market is expected to transform, while demand for housing and home loans remains strong, with new products intensifying. In September, 5 percent more individuals were interested in homes for sale than a year earlier. Demand for homes advertised by brokers was 5-19 percent higher this month.
Demand for the best home loans rose by 105 percent. In the first half of the year, more than HUF 400 billion of housing loans were taken out in the entire Hungarian market, which is 39 per cent higher than a year earlier.
Changes in home financing in the next period
With the expiry of existing contracts, the elimination of state subsidies for home savings will gradually reduce the role of home funds . According to the latest governmental references, the state housing support system may also include a home improvement element . Banks may also be launching new products in the future, such as a personal loan for renovation or a mortgage loan at an interest rate discount after saving. There is a strong demand from the population for these, according to the most recent data. The housing market and the mortgage market are showing signs of growth, thanks to continued strong demand – a comprehensive analysis of real estate.com reveals the current state of both markets.
With the rise in prices, the role of home loans may further increase
Demand for housing shows that in September this year, 5% more private homes were sold on real estate.com than a year earlier. And real estate brokerage homes were up 5-19 percent this month.
As homes become more expensive, buyers are increasingly in need of external funding to buy real estate, which may further increase the role of home loans in the real estate market. In the first nine months of this year, 105% more home loan calculations were launched this year, according to Nicely Bank, which belongs to the real estate group . And within the total loan calculations, the proportion of home loans was close to 50 percent. Rina Bloom, a loan expert at Nicely Bank , said there is growing interest in predictable, fixed-term mortgages , including consumer-friendly home loans , which provide protection against interest rate risk. There is also a growing demand for consumer-friendly home loans .
Strong figures on the mortgage market
The CSO’s statistics also show a clear expansion. In the first half of the year, banks gave the green light to more than 53,000 home loans , an increase of 18 percent. The total amount of home loans increased by 39 per cent to over HUF 400 billion. Rina Bloom added that the numbers are even more impressive over the years. “In 2014, when the housing market was booming, banks signed as many home loan agreements as in the first half of this year. The total amount of loans was HUF 244.5 billion in 2014, which was 65% higher than in the first half of this year, ”said Nicely Bank . He also said that in the first half of this year, the average amount of home loans was close to HUF 8 million, a 17 percent year-over-year increase and more than 60 percent higher than in 2014.
According to the analysis, demand in the housing market continues to be significant , with the rise in households’ real net wages and low interest rates on home and personal loans, which can provide additional ammunition. Competition for buyers can intensify and banks can come up with new products. Therefore, according to Nicely Bank experts, it will be even more important than the choice of credit that stakeholders thoroughly review the offer in order to find the best deal. This can save you up to a million dollars on a home purchase due to differences in the total repayments.