Hungarians took out 40 percent more mortgage loans in the first quarter

By: Trademagazin Date: 2025. 04. 29. 09:38

The amount of residential and non-residential mortgage loans issued increased significantly, by about 40 percent, in the first quarter compared to the same period of the previous year, according to a survey by the National Association of Independent Financial Intermediaries (FPKOSZ). According to data from the professional organization, which covers 85 percent of the intermediary market, the amount of newly concluded mortgage contracts in March reached 136 billion forints. Bank loan structures remain favorable, but due to rising real estate prices and the variety of alternatives available on the market, thorough information and the role of independent intermediaries are becoming increasingly important.

Mortgage contracts worth about 136 billion forints were concluded in Hungary in March, according to a survey conducted among members of the National Association of Independent Financial Intermediaries (FPKOSZ). According to the organization, which represents 85 percent of the credit intermediary market, Hungarians took out mortgage loans worth nearly 395 billion forints in the first quarter, a 40 percent increase compared to the same period of the previous year (282 billion forints). While the Hungarian credit market still lags behind European and regional lending, domestic figures have been showing an upward trend since the fall after the decline following last summer’s peak: the volume of new loan agreements was last higher in July 2024 than in March. According to the organization, this may be further strengthened by the fact that banks are keen to lend and that available loan interest rates are below the level of 10-year government securities, so even with an average salary, good home loan alternatives are available below the interest rate of government securities. According to Balázs Sándorfi, President of FPKOSZ, however, the appropriate choice between the constructions available on the market and rising real estate prices are putting consumers under increasing pressure. This situation enhances the role of independent intermediaries, who, as experts, recommend the most suitable scheme for a given life situation from the offers of several financial institutions.

The rising trend of the credit market may be broken by two market conditions, draws attention to the FPKOSZ. According to the organization’s data, the moderate decline in the CSOK Plusz ratio in the case of mortgage loans for housing continued. The reason for this is that when the scheme was introduced, at the beginning of 2024, some couples who wanted to have children in the future were able to bring their loans forward, and after the market downturn in 2023, they were able to return to buying real estate more quickly thanks to the new opportunity. The rising trend in the volume placed with loan disbursements may also be broken by the further decrease in the number of real estate market transactions due to the increase in prices. Real estate prices in popular, frequented areas of the country have increased by about 15 percent on an annual basis. If this trend continues, the dynamics of home loan placement may be broken.