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A recent press release by money.hu reveals significant changes in bank interest rate discounts linked to income credits during the summer. These adjustments are impacting loan conditions, particularly for lower-income applicants. The analysis also explores real estate opportunities in Budapest and beyond for those with average incomes.
The survey aimed to evaluate the impact of recent changes in interest rate discounts on loan conditions and assess real estate market opportunities for average-income individuals. According to the Hungarian Central Statistical Office (KSH), the average gross salary in May was HUF 433,600 (EUR 1,196).
This income level significantly influences the interest rate subsidies and the loan amounts borrowers can access.
Recent adjustments by banks have notably altered the conditions for interest rate discounts. For example, Erste Bank increased the required monthly credit from HUF 200,000 (EUR 542) to HUF 400,000 (EUR 1,083) starting June 15. K&H Bank raised its threshold from HUF 250,000 (EUR 678) to HUF 500,000 (EUR 1,356) as of July 29 . OTP Bank, on the other hand, reduced the required credit level for discounts from HUF 900,000 (EUR 1,223) to HUF 700,000 (EUR 1,416) but increased the applicable interest rate.
For those with an average gross salary of HUF 433,600 (EUR 1,196), the income-based repayment ratio allows up to 50% of net income for loan repayments.
This equates to a maximum monthly repayment of HUF 216,800 (EUR 598), which could support a HUF 30 million (EUR 81,000) loan over 20 years with minimal equity. This loan could finance a property worth HUF 37.5 million (EUR 101,500), with HUF 7.5 million (EUR 20,300) as equity. Including a partner’s income can enable larger loans or better terms.
For those looking to buy a home priced around HUF 37.5M (EUR 101,500), there is a substantial supply on the market.
In Budapest and county seats, 11,000 properties are available in this price range, with notable options in cities like Miskolc (Northern Hungary), Pécs (Southern Hungary), and Nyíregyháza (Eastern Hungary). The cities where properties are the cheapest are Salgótarján (Nothern Hungary), Békéscsaba (South-Eastern Hungary), and other rural areas.
In these places, larger properties are available for the same price compared to smaller apartments in Budapest.
The analysis highlights the evolving landscape of loan conditions due to changes in bank interest rate discounts and provides insight into the real estate market’s accessibility for average-income buyers. With significant numbers of properties available in Budapest and county seats, and various loan options to consider, prospective buyers can find opportunities tailored to their financial situation.
Via money.hu; Featured Image: Pixabay