Find Out How Much OTP Will Offer Housing Loans for from 2024

Published: December 18 2023

The OTP Bank in Hungary has announced the interest rates for housing loans that will be in effect from January 2024. This early announcement is likely due to the voluntary reduction of the interest rate cap by banks for housing loans, which will decrease from the current 8.5% to 7.3%. This article will provide an overview of the new interest rates and conditions offered by OTP Bank for housing loans.

From January 2024, the OTP Bank will offer housing loans with a maximum total cost indicator (THM) of 7.3%. This means that the bank will not offer mortgage loans at a higher interest rate than this. The lowest interest rate offered by OTP is 6.8%, resulting in a THM of 7.13% for average customers. This reduction in interest rates allows OTP Bank to remain competitive in the market.

While OTP Bank has made significant reductions in interest rates, other banks may also adjust their rates before or after January 1, 2024. It is important for potential borrowers to compare the conditions offered by different banks before making a decision. However, OTP Bank's current rates make it one of the most affordable options for housing loans, even before the reduction.

OTP Bank offers different loan products for housing purposes, including the "Végig Fix" and "1x1" loans. The "Végig Fix" loan currently has an interest rate of 8%, which will be reduced to 6.97% from January 2024. The "1x1" loan, currently with a 7.8% interest rate, will be reduced to 6.87%. These reductions in interest rates apply to loans for both regular housing purposes and those fulfilling the conditions for green financing.

In addition to the interest rate reductions, OTP Bank will also adjust the additional discounts offered for certain conditions. Currently, customers with a monthly income transfer of at least 700,000 HUF receive a 0.2% interest rate discount. From January 2024, this discount will be reduced to 0.1% as part of the Loyalty Program.

The early announcement of the new interest rates by OTP Bank provides clarity for potential homebuyers planning to take out housing loans from 2024. With competitive rates and flexible loan options, OTP Bank continues to be an attractive choice for those looking to finance their homeownership dreams.

When will the new housing loan interest rates from OTP be effective? The new housing loan interest rates from OTP will be effective from January 1, 2024.

Why did OTP announce the new interest rates early? OTP may have announced the new interest rates early because starting from January 1, 2024, the voluntary interest rate cap for housing loans offered by banks will decrease from the current 8.5% to 7.3%. This means that the maximum value of the Total Cost of Credit (THM) will be limited to 7.3%, and banks will not offer housing loans with higher interest rates. By knowing this information, banks can already determine the interest rates they will offer from the beginning of 2024.

Which bank was the first to implement a interest rate reduction in line with the new cap in Hungary? The Gránit Bank was the first to implement an interest rate reduction in line with the new cap in Hungary. Starting from December 15, 2023, they offered housing loans with an interest rate of 6.8% and a THM of 7.13% for average customers.

How does OTP's new interest rates compare to the new cap? OTP has reduced its interest rates slightly compared to the new cap. For their Végig Fix loan products, the interest rate will be reduced from the current 8% to 6.97% starting from January 1, 2024. For their 1x1 loans and green loans, the interest rates will decrease from 7.8% to 6.87% from the same date.

Will OTP make any changes to its other loan offers and promotions? Yes, OTP will make changes to its other loan offers and promotions. For example, the available interest rate discounts for income transfers of at least HUF 700,000 per month will be reduced from 0.2% to 0.1% as part of the Loyalty service.