More apartment buyers applied for a loan in 2014 than in the previous years, and the trend is expected to increase further in 2015.
Buyers trust more in loans, their cost decreased, and the banks are also more active.
The rate of apartments bought using a loan was the highest last year: 20 percent in the first half of 2014, and 25 percent in the second half.
A HUF 7.5 Million Loan Was Applied for on Average
According to the data of Otthon Centrum Mortgage Center the mortgage broker service of the real estate agency provided a HUF 7.5 million loan for apartment buyers on average, which is one million more than during the years of the crisis. In 2013 only a total of HUF 150 billion loan was provided by banks; in 2014 60 percent more. According to the expectations this increase will continue in 2015: 10-15 percent more buyers will apply for a loan when buying an apartment.
3 Reasons Why More Loans Were Applied For
One of the reasons for the increase of the mortgage application activity is the lower APR rates, which was around 6 percent at the end of last year. Another reason is that the households’ faith in loans increased, and the third one is that the banks came up with discounts and low base interest rates to lure the clients.A lot of buyers choose to apply for a loan not because of the lack of capital but because of the pleasant conditions. Besides small-amount mortgages (under HUF 10 million) large-amount ones (around HUF 20-30 million) are also popular among those who buy an apartment for their own use and among investors as well.