The central bank’s department, denied rumors that new consumer-friendly home loans had failed to improve the credit market. An article reflecting the head of department’s opinion can be read below.
The competition for Qualified Consumer-Friendly Home Loans is already well-visible, though there is still a short period to look at.
There has been a keen interest in the housing market since the call for proposals on 19 May 2017. More and more qualified products are being placed on the market that meet the conditions set by the Good Finance, and banks are also very interested.
Purpose of certification
• lower interest rates on longer-term home loans
• make the options more transparent and cheaper
• the information becomes accurate and reliable
• market more comparable products
• weaken competition between banks should be encouraged
This is facilitated by a website that compares market products that meet the Good Finance’s criteria and is supported by the Good Finance. The effects of qualifying products are designed to be long-term, and in any case, they help cheaper products and exclude harshly rising interest rate loans.
Worth looking at the fact that the comparisons are from September 1
The point is:
“In the second quarter, fixed-rate housing loans fell by an average of 33 basis points in the second quarter, which is not only due to the decline in benchmark yields. Average mortgage rates also declined by about 10-20 basis points in the quarter, which may have been the reason for the expected release of Qualified Consumer Friendly Home Loans, ”said the head of department.
Unfortunately, the published article only looked at a few or two cases.
It would be better to look at the changes in long-term loan spreads over the same period last year and this year.
As the product is being introduced, the ratio of Qualified Consumer Friendly Home Loans in the 2017 sample is still low. However, it is perceptible that we can see a decrease in both average values and distribution between May and July 2017, taking into account the same period of 2016.
In the event of a significant increase in Qualified Home Loans, a further decline is likely.
The boom in competition is not expected for the cheapest loans
But for lower-priced loans that are easily payable by good earners. Many low-commodity products are still available on the market, but there is no change in the comparability of interest rates.
One of the great advantages of Qualified Consumer-Friendly Home Loans is that it has a lower interest rate compared to the average of real estate market products. Products that are easy to compare and transparent over the lifetime of the customer, and will certainly enhance market competition with their interest-reducing effect.
It would be an analytical mistake for anyone to formulate a general and bad opinion about a newly launched product of a few months’ duration, a non-generalizable, less well-known, well-thought-out and qualified home loan that is under construction!
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