The majority of credit institutions lowered their fixed-rate home loan interest rates this month. With this step, both homeowners and new applicants are doing well. Those who have previously borrowed and interest periods are now due to pay back hundreds of thousands of HUF less on their existing home loan due to interest rate cuts. Those who are now applying for a home loan on a 5-year fixed rate loan can get their loan at interest rates below 3%.
New home loans applied for were fixed-rate loans
Fortunately, the market has not replaced the fears that have been one of the biggest concerns of homeowners in recent times. Institutional government bond yields have not risen or even declined in recent weeks. As a result, credit institutions have also reduced interest rates on their home loans. Despite the favorable changes, experts continue to expect that the vast majority of applicants will seek security, so demand for fixed-rate mortgages will increase in the coming period. This trend is also supported by GFI statistics. In 2019, 90% of new home loans applied for were fixed-rate loans, and more than 70% of borrowings were taken out over 5 years.
Mortgages with fixed installments
This trend is no accident. In addition to the pursuit of security, it has also contributed to the spread of fixed-rate loans that this type of loan has become much cheaper in recent years. Not by chance, because market rates have also fallen. The interest rate on a three-month loan is between 2.1% and 4.5%. For a six-month home loan, this value is between 2.8 and 3.5%. For a one-year period, 2.7% and 3.9% of applicants are eligible. The interest rate on 5-year fixed-term loans ranges from 2.9% to 4.7%. The interest rate for the 10-year interest rate is 3.6% and 5.3%. And for mortgages with fixed installments, banks offer between 5.4% and 7.9%.
Paying attention to the opportunities
In addition to choosing a home loan with an appropriate interest period, it is worth paying attention to the opportunities offered by the state aid introduced on July 1, 2019 . After all, with an interest-subsidized home loan, applying for the Baby Waiting Facility or using the extended GFI, the family can save tens of thousands of forints. If you are interested in home loans and government grants, please fill out our form and our credit broker will be looking for you!