This year, the majority of new housing loans, 71 per cent, were used for second-hand housing. 12 percent of home loans went to new homes and the share of home construction was 10 percent in the first two months of the year.
The state housing program has a similar rate, with 70 percent of the subsidies available under the Family Housing Discount applied for used real estate.
There is more evidence that homeowners are becoming more cautious
According to the Good Finance’s analysis, there is more evidence that homeowners are becoming more cautious. On the one hand, the ratio of fixed-rate home loans to new home loans is already 96 per cent and that of risky floating-rate loans is 4 per cent.On the other hand, repayments are being fixed for an increasing period of time: compared to less than 7 years a year ago, the average time to fix interest rates is now over 9 years. That is to say, the creditors secure themselves for much longer.
Mortgage borrowers are increasingly seeking to secure loans for primarily used homes, according to a recent analysis of official central bank data by the Good Finance of real estate.com .
In the first two months of the year, banks concluded home loan agreements worth more than HUF 122 billion, which corresponds to an annual growth of 12 per cent. The majority of new home loans have been used to buy used homes , representing a 71 percent stake. 12 percent of home loans went to buy new homes . The proportion of home or house construction was 10 per cent and 3 per cent of home loans were applied for renovation and modernization.
A leading money market expert at the Good Finance at real estate.com, said: ” Second-hand housing is clearly the key to new home loans. This is also true for the state housing program, with over two thirds – 70 percent – of the subsidies available under the Family Housing Discount (CHC) being taken up by second-hand homes. In the case of a second-hand apartment, the average subsidy used in the system was HUF 1.5 million on average in 2016, 2017, 2018 and this year as well.
Homeowners want security
According to the latest credit market data, the Good Finance expert also shows that mortgage lenders are opting for greater security.
On the one hand, the share of risky, variable-rate home loans is only 4 percent of the total number of new home loans. “On the other hand, borrowers are recording repayments for an increasing amount of time . In February of this year, mortgages for at least one year were 109 months, or more than 9 years, compared with 80 months last February, less than 7 years.”
In the case of housing loans taken out for second-hand housing, the floating rate decreased by 89 per cent year-on-year to 89 billion HUF, and that of fixed-rate loans for at least one year increased by 55 per cent to more than 84 billion HUF.