The growth rate of 7.5% for the housing loan portfolio in 2022 has slowed compared to the previous four years. Loans approved and disbursed fell short of the previous year. The weight of second-hand housing purchases declined, while lending for new housing expanded. In the second half of 2022, in addition to the increase in lending for new housing, the amount disbursed for the purchase of second-hand housing barely exceeded half of the value for the same period of the previous year.
Increase in the stock of housing loans
The stock of housing loans in Hungary stood at HUF 4928 billion at the end of 2022, 7.5% higher than in 2021. The growth rate slowed down significantly compared to 15% in 2021. The ratio of housing loans to GDP decreased from 8.3% at the end of the previous year to 7.4%.
Newly disbursed loans played an increasingly important role in the growth of the housing loan stock, and the repayment moratorium no longer had a significant impact on the stock in 2022.
In 2022, the stock of state-subsidised housing loans increased by 16% and that of unsubsidised loans by 5.8% compared to the end of the previous year, while their share in the total stock of housing loans remained broadly unchanged (18% and 82% respectively).
At the end of 2022, the share of banks in the total housing loan stock reached 59%. The shares of mortgage banks and home savings banks were 30% and 11% respectively, with no significant shift.
Stock of housing loans by lender, 31 December 2022
| Credit institution | Number of housing loans | Amount of housing loans, HUF billion |
|---|---|---|
| Banks | 334 070 | 2 893 |
| Mortgage banks | 218 618 | 1 492 |
| Home savings banks | 122 452 | 544 |
| Total | 675 140 | 4 928 |
The ratio of problem-free loans rose from 86% to 97% between 2015 and 2021, and then this ratio did not change significantly in 2022. Non-performing exposure was 3.7% in H2 2021, declining to 3.2% in 2022. The number of non-performing loans fell from 25 thousand at the end of the previous year to 21 thousand.
Restructured housing loans accounted for 2.7% of performing loans in H2 2022, a significant decrease compared to 7.7% a year earlier and linked to the partial lifting of the repayment moratorium. 59% of non-performing loans were restructured, an increase of 12 percentage points compared to the end of the previous year.
As a result of the November 2021 measures limiting the availability of the repayment moratorium, the number of housing loans affected by the moratorium decreased to 39 thousand and their value to HUF 267 billion by the end of June 2022. This trend continued until the end of 2022, when the number of housing loans affected by the moratorium was 27 thousand and their value HUF 165 billion, so that at the end of the year the moratorium affected only 4.0% of all housing loans and 3.3% of the housing loan portfolio.
At the end of 2022, the share of loans affected by the moratorium was 3.2% for banks, 3.8% for mortgage banks and 2.7% for home savings banks. The number of loans affected was 5.0% for banks, 3.4% for mortgage banks and 2.0% for home savings banks.
Stock of housing loans affected by the moratorium
| Credit institution | Number of housing loans | Amount of housing loans, HUF billion | Number of housing loans | Amount of housing loans, HUF billion |
|---|---|---|---|---|
| 31.12.2021 | 31.12.2022 | |||
| Bank | 25 515 | 171.0 | 16 785 | 93.4 |
| Mortgage banks | 16 782 | 115.5 | 7 528 | 56.7 |
| Home savings banks | 4 023 | 22.6 | 2 390 | 14.4 |
| Total | 46 320 | 309.1 | 26 703 | 164.5 |
Significant decrease in the amount of loans granted
In 2022, 93.6 thousand housing loans worth HUF 1 187 billion were approved. Compared to the previous year, the number of loans authorised fell by 15% and the amount by 9.3%. In the first half of the year, both indicators were still on the rise. The turnaround occurred in the second half of the year, when the number of loans granted was 33% down on the same period of the previous year, while the amount was 39% lower.
In addition to home purchase subsidies, the Green Home Programme, launched in October 2021, contributed to the increase in housing lending in the first half of the year, but the programme ended in the second half of 2022 and demand for housing loans also declined due to rising interest rates. The average amount of loans per approval fell to HUF 11.2 million at the end of 2022, HUF 2.5 million less than in the first half of 2022 and HUF 1.1 million less than at the end of 2021.
Among the housing loans granted, the number of state-subsidised loans fell by 3.2% year-on-year, while their amount increased by 16%. Unsubsidised loans, which accounted for more than three quarters of the total number of loans, declined in both number and value (by 19% and 15% respectively), with the slowing trend accelerating in the second half of the year.
As unsubsidised loans fell more sharply, subsidised lending for housing continued to grow within the approvals, with the share of subsidised loans increasing from 29% to 32% and their value reaching 24%, compared to 19% in the previous year.
Housing loans approved, 2022
| Type of housing loan | Number of housing loans | Amount of housing loans billion HUF |
|---|---|---|
| State-subsidized | 30 385 | 286 |
| Non-subsidized | 63 215 | 901 |
| Total | 93 600 | 1 187 |
Most loans were granted for the purchase of second-hand housing
In 2022, 93 thousand housing loans were disbursed, 23% less than a year earlier. The HUF 1 069 billion disbursed during the year was 14% below the previous year. At the same time, the 43 thousand housing loans disbursed in the second half of the year already represent a 31% drop compared to the same period last year.
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Housing loans continued to be dominated by loans for the purchase of second-hand dwellings, with one in two loans disbursed for this purpose. They amounted to 45 thousand loans and 632 billion forints over the year, both down significantly (by 38% and 26% respectively). The decline was more pronounced in the second half of the year, when the number of loans disbursed for the purchase of second-hand housing fell by 49% and the amount by 44%. The average loan amount increased from HUF 11.9 million in 2021 to HUF 14.0 million in 2022, this amount was the same in the first and second half years.
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The annual number of loans granted for housing construction increased by 37% and their value by 61%. This type of loan also expanded in the second half of the year, when the number of loans increased by 27% and their amount by 30%. The average loan amount, however, peaked in the first half of the year (HUF 7.2 million) and then fell in the second half (to HUF 6.7 million).
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Lending for the purchase of new homes increased only slightly (3.1%) during the year, but the amount disbursed increased by 26% in line with the rise in new home prices. The average loan was the highest in this category: HUF 18 million in H1 2022, rising to HUF 21 million in the second half of the year.
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The number of loans for modernisation and extension increased sharply in 2021, driven by housing renovation grants and related pre-financing loans. In 2022, the number of loans disbursed for this purpose was still significant, but decreasing. The average renovation loan decreased from HUF 5.9 million in the first half of the year to HUF 5.5 million in the second half.
Loans disbursed for housing purposes by purpose and by lending institution, 2022
| Denomination | Banks | Mortgage banks | Home savings banks | Total |
|---|---|---|---|---|
| Number of loans | ||||
| Construction | 5 789 | 12 437 | 454 | 18 680 |
| Buying a new home | 4 765 | 3 385 | 535 | 8 685 |
| Buying a second-hand home | 26 939 | 12 370 | 5 724 | 45 033 |
| Modernisation | 4 277 | 5 672 | 6 119 | 16 068 |
| Extension | 782 | 436 | 52 | 1 270 |
| Loan refinance | 1 604 | – | 903 | 2 507 |
| Other purposes | 433 | 130 | 251 | 814 |
| Total | 44 589 | 34 430 | 14 038 | 93 057 |
| Volume of loans, HUF million | ||||
| Construction | 53 656 | 72 284 | 3 676 | 129 616 |
| Buying a new home | 89 553 | 77 389 | 3 332 | 170 274 |
| Buying a second-hand home | 430 173 | 156 475 | 45 806 | 632 454 |
| Modernisation | 36 607 | 26 160 | 30 668 | 93 435 |
| Extension | 3 068 | 1 703 | 336 | 5 107 |
| Loan refinance | 22 528 | – | 5 532 | 28 060 |
| Other purposes | 7 388 | 2 110 | 581 | 10 079 |
| Total | 642 973 | 336 121 | 89 931 | 1 069 025 |
Reduced disbursement of CSOK subsidies
Between 2016 and 2022, the number of family home creation grants paid out by credit institutions was nearly 230 thousand, amounting to HUF 560 billion. The average amount per disbursement was HUF 2.4 million. A total of 73 thousand CSOK grants were disbursed for the construction and purchase of new housing, accounting for 32% of cases, while 49% of the total amount of grants disbursed was used for the purchase of new housing.
Family home creation grants by purpose, 2016–2022
| Purpose | Disbursement | |
|---|---|---|
| number, grants | volume, HUF billion | |
| Building a new home | 46 362 | 138.4 |
| Buying a new home | 26 422 | 136.1 |
| Buying a second-hand home | 138 105 | 256.3 |
| Home extension | 19 106 | 29.0 |
| Total | 229 995 | 559.8 |
In 2022, 3.6% fewer CSOK grants were disbursed, with a 1.0% increase in value. In the second half of the year, the number of subsidies disbursed decreased by 13% and the amount by 5.8% compared to the same period of the previous year.
Family home creation grants
| Year | Disbursements | |
|---|---|---|
| Number of disbursements | Amount of disbursements HUF billion | |
| 2016 | 20 755 | 47.4 |
| 2017 | 29 104 | 70.1 |
| 2018 | 31 202 | 71.3 |
| 2019 | 33 064 | 83.4 |
| 2020 | 38 172 | 103.8 |
| 2021 | 39 555 | 91.4 |
| 2022 | 38 143 | 92.4 |
| Total | 229 995 | 559.8 |
In 2022, the average amount of CSOK per disbursement was:
- HUF 3.4 million for the construction of a new dwelling,
- HUF 3.9 million for the purchase of a new dwelling,
- HUF 2.0 million for the purchase of a second-hand dwelling,
- HUF 1.7 million for the extension of a dwelling.
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