A pro-government bill (not yet adopted) would redefine the market for home savings: the amendment would eliminate state support for high construction returns.
The yield on home savings contracts is outstanding, up to over 10 percent
At the end of the first half of this year, the share of housing savings funds in the total housing loan portfolio – HUF 3,140 billion – was above 12 per cent.
An anti-government bill that has been passed to parliament and has not yet been approved would eliminate state aid for home savings contracts. After the entry into force of the amendment, housing savings contracts would not be accompanied by the current state subsidy of 30 percent, up to a maximum of 72 thousand HUF per year.
“So far, this is just a bill, so no specifics can be said. In any case, it is a fact that state support is a very important element of home savings contracts, primarily due to the fact that these contracts provide up to two-digit yields, ”said Erika Trencsán, an expert at Good Finance .
Attack is expected
According to a recent compilation by Good Finance , offers on October 15 had the highest yields on 4-year home savings contracts , at 10.28-12.54 percent, which is outstanding in the current low interest and yield environment.
“If the bill is approved unchanged by the parliament in the next few days, there will be a public spurt and a lot of contracting before it enters into force because the law will not retroactively affect home savings contracts, ” added Erika Trencsán.
An expert at Good Finance said that after the savings period
People can take out a home loan for a savings contract . The expert also quoted the Hungarian Central Statistical Office (KSH) as saying that at the end of the first half of this year, mortgage loans at home saving funds operating in the Hungarian market amounted to HUF 385 billion, which represented more than 12 per cent of the total mortgage loan portfolio.
Banks held 1,773 billion forints home loans, accounting for 57 percent of total loans. Mortgage banks held 28% and savings cooperatives more than 3%.