Housing savings have shrunk, but this will not be the case for much longer

At the end of last year, the total deposit portfolio of the three Hungarian housing savings banks was slightly below HUF 990 billion, which reflects a 9.6 percent decrease compared to the volume of HUF 1,094.9 billion a year earlier, according to the Golden Book of the Magyar Nemzeti Bank (MNB). contains the most important balance sheet and profit data of the players in the financial services sector.

On the other hand, the MNB measured a much more modest decline of 3.4 percent in the portfolio of loans, so the portfolio of the three service providers together reached approximately HUF 543 billion at the end of December.

By the way, the funds are quite a significant player in the domestic market: their stock accounted for 10.8 percent of the entire housing loan portfolio in December. Meanwhile, the total balance sheet total of the housing funds shrank by 6 percent and was slightly below HUF 1,270 billion at the end of last year.

Péter Gergely, the financial expert of BiztosDöntés.hu, told our paper. At the same time, he added, this situation may change in the future, since according to the declarations of housing associations, the volume of new LTP contracts is already approaching the level before the end of state support.

An interest bonus of up to 30 percent is tempting

According to the financial expert of BiztosDöntés.hu, attention was again drawn to housing savings when they started selling their schemes with significant interest bonuses. Depending on the scheme, the amount of the available bonus can range from 10 to 30 percent: and although it is true that it is not a compound interest, those saving for housing can still get a clearly visible return on an annual basis.

At the same time, the offer of the three service providers – in contrast to the period before the end of state support – shows significant differences, whether it is about the selectable durations of the savings period or the maximum amount of the agreed monthly savings.

The Erste Housing Savings its customers can choose from three types of savings periods: five-year, eight-year and ten-year options are available with the service provider, with a minimum monthly payment of HUF 10,000 and a maximum of HUF 50,000. However, it is important that the financial institution already gives an interest bonus at the time of payment in the case of at least 4 years of savings and use for housing purposes. The rate of the interest bonus at Erste LTP is 15 percent for the shorter-term structure, and 30 percent for the two longer-term options.

By the way, Erste Lakástakarék has recently modified its offer on several points: for the shortest term option, the length of the savings period has been increased from 4 to 5 years, while a product version with a ten-year savings period has also been introduced. The special feature of the latter is that after four years, the customer can request a partial payment for housing purposes, with which up to 40 percent of their own payments can be withdrawn. The partial payment does not entail the termination of the contract, moreover, the interest bonus may also apply unchanged after the payments. Erste Lakástakarek now also waives the account opening fee of one percent of the contracted amount if the customer meets the specified conditions. The service provider’s website is also detailed, covering all the parameters of the product housing savings calculator is located.

OTP Lakástakarek offers options with four- and eight-year savings periods – under the name OTP Lakástakarek Prémium – with a maximum monthly saving of HUF 50,000. The financial service provider gives an interest bonus of 10 percent for the shorter term and 30 percent for the longer term. At OTP Lakástakarek, the customer can enter into a contract through several channels: online in the internet or mobile bank, but also in OTP Bank branches, mobile bankers and contractual partners.

Fundamenta runs several campaigns simultaneously for its projects, where the agreed monthly payment can reach HUF 100,000. According to the information on the service provider’s website, with the Fundamenta Gyarapodó Kásstálte, you can achieve a progressive bonus of up to 40 percent in the last savings year, while with the long-term option and the highest committed payment, a contract amount of almost HUF 40 million is available. In the case of home savings contracts of the Growing Housing Account with Progressive Bonus typed family concluded during the duration of the campaign – if the monthly savings are at least HUF 40,000 and the savings period is at least 76 months – 1 percent of the contract amount will also be credited if the contract is terminated by a transfer. And in the promotion called Gyerek Akció, if the client opening the account designates a close relative of the minor as the beneficiary, an additional fixed 5 percent bonus will be credited in addition to the product discount of the chosen housing account if the conditions of the promotion are met. And in the Plusz 25 Bonus promotion, customers who extend their contract can receive an extra bonus for their deposited deposits.

An important old item may return

The attractiveness of housing savings banks can be significantly increased if, in accordance with a bill submitted on September 11, they really introduce the possibility for customers to take out a loan from the banks before the end of the savings period.

“If the possibility of taking out loans in advance is really introduced, it can be favorable on several points housing savings point of view. On the one hand, the potential customers of the cash registers will find it much easier to reach a savings period of up to ten years if they know that they can get a loan if needed even before it expires. In addition, home savings can play a much more active role in the home loan market, which ended a very weak year last year, but this year has recovered spectacularly, and may even end with a new placement record,” reminded Péter Gergely.