The must-have newsletter about Hungary

Related Articles

BORROWERS TAKE OUT HUF 22BN OF GREEN HOME PROGRAMME CREDIT

 

Lenders have disbursed 22 billion forints of credit in the framework of the Green Home Programme of the National Bank of Hungary (NBH) since the launch of the scheme on October 4. Banks signed 753 contracts for the credit by the end of 2021, the NBH said. Fully 12 billion forints of the credit was disbursed for detached houses and plots, while 6 billion was for homes in multi-residential buildings. Around half of the credit was for homes the owners are building themselves. The average loan size was 28.6 million forints and the average run was 20.6 years.
In the framework of the Green Home Programme, the central bank is providing zero percent refinancing to lenders for retail loans for new homes with a primary energy consumption threshold of 90 kWh/sqm per year. Interest rates on the loans are capped at 2.5%.
The average interest rate for a home loan — excluding loans with floating rates set for periods of one year or less — stood at 4.26 percent in November, the latest NBH data show. The Green Home Programme credit is limited to borrowers who plan to reside in the homes they purchase, excluding property investors. The initial allocation for the scheme has been set at 200 billion forints.