Published: December 12 2023
Starting from January 2024, there will be lower interest rates for home loans and business loans in Budapest. The maximum annual percentage rate of charge (THM) for home loans will decrease from 8.5% to 7.3%, and for business working capital loans it will decrease to 9.9%. Additionally, the interest rate cap and the interest rate stop for small and medium-sized business loans will be abolished from April 2024.
Lower interest rates for home loans
From January 2024, new home loan contracts will have a reduced maximum THM of 7.3%, compared to the current rate of 8.5%. This will make home loans more affordable for borrowers in Budapest.
Lower interest rates for business loans
New business working capital loans will have a single-digit interest rate of 9.9%, down from the current rate of 11.5%. This change aims to support businesses in Budapest by providing them access to more affordable financing options.
Abolishment of interest rate cap and interest rate stop for small and medium-sized business loans
From April 2024, the interest rate stop for small and medium-sized business loans will be lifted. This means that banks will no longer be restricted in setting the interest rates for these loans. Additionally, the voluntary interest rate cap will also be abolished for both business working capital loans and home loans.
Conclusion
The reduction of interest rates for home loans and business loans in Budapest starting from 2024 is expected to make borrowing more affordable for individuals and businesses. This move aims to stimulate economic growth and support the development of the housing market in the city.
Questions & Answers
What is the purpose of the new agreement between the government and the Bankszövetség? The purpose of the new agreement is to lower interest rates for home loans and business loans in Budapest starting in 2024.
When will the maximum annual percentage rate (THM) for home loans decrease? The maximum THM for home loans will decrease from the current 8.5% to 7.3% starting in January 2024.
When will the maximum THM for business loans decrease? The maximum THM for business loans will decrease from the current 11.5% to 9.9% starting in January 2024.
When will the interest rate cap and the interest rate stop for SME loans be abolished? The interest rate cap and the interest rate stop for SME loans will be abolished starting in April 2024.
Who participated in the discussions regarding the agreement? Nagy Márton, the Minister of Economic Development, held discussions with representatives from the Bankszövetség (Banking Association) in Budapest.
What does the agreement state regarding new loan contracts? According to the agreement, starting from January 1, 2024, the voluntary interest rate cap will be reduced for both home loans and business loans.
How much will the maximum THM decrease for home loans? The maximum THM for home loans will decrease from the current 8.5% to 7.3%.
How much will the maximum THM decrease for business loans? The maximum THM for business loans will decrease from the current 11.5% to 9.9%.
When will the interest rate stop for SME loans end? The interest rate stop for SME loans will end on April 1, 2024.
When will the voluntary interest rate cap end for business loans and home loans? The voluntary interest rate cap will end for business loans and home loans starting in April 2024.
