Bank360: The population has incurred a record amount of debt, with both housing loans and personal loans hitting record highs

By: Trademagazin Date: 2025. 02. 04. 10:55

Banks set a record in 2024: the amount of new contracts was 1,351 billion forints in housing loans and almost 820 billion forints in personal loans. The rise in housing prices, the effect of previously high inflation and deferred demand may also have played a role in the records. Banks can expect a strong year this year as well, as they can now offer new subsidized loans, such as workers’ loans, to their customers – according to an analysis by Bank360.hu.

The population’s bank loan portfolio set a record. At the end of 2024, families owed more than 11,100 billion forints to financial institutions, 950 billion forints more than at the beginning of the year. There was a larger annual loan growth than this in the years before the 2008 credit crisis and between 2018 and 2020, but last year the population diligently repaid, while taking out new loans in unprecedented quantities – writes Bank360.hu.

Banks have never sold such a large amount of housing loans as in 2024. According to data from the Hungarian National Bank (MNB), the contractual amount of new loans was 1,351.4 billion forints, which is more than double that of 2023, but even exceeded the previous record year of 2021, which was 1,303.1 billion. The market was in good shape throughout the year, with the amount of new loans exceeding 100 billion forints every month since April. Subsidized loans also sold well, according to statistics, loans available alongside CSOK Plusz and rural CSOK accounted for about a quarter of new loans.

Mainly used homes were purchased on credit

More than three-quarters of home loans were taken out to buy used homes, and a tenth for new homes. Less than 100 billion forints were spent on construction and expansion, and only 45.3 billion went to renovation. Only 26 billion forints of home loans were taken out for other purposes – such as loan redemption. The amount of loans taken out for renovation may increase in 2025, as two such subsidies are already in place, in which you can get a loan worth several million for this purpose at a discount.

Home lending may also be strong in general this year. The price of real estate is rising, which is why buyers may need more loans. According to Herman Bernadett, an expert at Bank360.hu, the number of transactions may also jump, as those with larger pension fund savings and investors exiting Premium Hungarian Government Bonds (PMÁP) after the interest rate change will be able to purchase properties in the order of one thousand billion forints.