New consumer-friendly loans arrive!

From October onwards, they will arrive at the banks and be eligible for the 15-year fixed rate Qualified Consumer-Friendly Home Loan schemes.

The central bank has recently changed its rating framework.

Qualified consumer loans have become increasingly popular, and the new type will encourage more widespread use of safer mortgages with longer fixed interest rates.

New loans, nearly 60% of mortgage loans with a maturity of over one year 


“Banks will be able to begin incorporating 15-year Fixed Rate Qualified Consumer Loans (MFL) into their palette as of October 1, 2018, as the National Bank of Hungary (MNB) has adapted its framework for consumer-friendly home loans.”

Its purpose is to spread long-term secure home loans, the predictability of which is guaranteed by a longer interest rate fixation.

These home loans are among the least risky mortgage loans because

These home loans are among the least risky mortgage loans because

  • due to their lower interest rate risk, it will also be applicable from October,
  • they can also be classified as less risky products for the purpose of calculating interest-bearing repayment installments (JTM).

Starting in the autumn, credit institutions will no longer be able to sell their MFL products, which have been fixed at 3-year interest rates. The terms and conditions of the 3-year MFL agreements concluded so far are unchanged under the terms and conditions of the concluded client contracts.

Within the framework of the Consumer Friendly Home Loan Certification Scheme introduced by the MNB, retail banks granted approximately HUF 177 billion of qualified home loans and disbursed nearly 16.3 thousand contracts by the end of July 2018.

At present, 60% of the monthly mortgage loans issued by domestic financial institutions and savings cooperatives are 60% MFL-rated and cover 60% of total contracts.

The total new home loan business, up from 50% a year ago

The total new home loan business, up from 50% a year ago

The APR of the projects is also lower than that of unqualified long-term home loans, which means a savings of several hundred thousand forints over the entire term.

If you are looking for a loan, are interested in your options, are thinking of buying a loan, are looking for a qualified consumer friendly loan, call our credit broker to help you make a professional decision!

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