Budapest, November 28, 2022 – In response to the current challenges of the housing loan market, the MNB decided to expand the requirements of the Certified Consumer-Friendly Housing Loan (CCHL) framework. The aim of the amendment is, on the one hand, to encourage the development of products that are available to a wide range of customers and support the financing of green housing goals under favourable conditions from April 2023. On the other hand, in order to support the spread of online lending processes, from January 2024 it will be possible for all certified loans to carry out the pre-contractual borrowing processes electronically.
In response to the current challenges of housing lending, the MNB decided to further develop the CCHL framework in a green direction to promote the renewal of the domestic housing stock in terms of energy efficiency. Through the development of the CCHL framework, the MNB can also contribute to the greening of the economy by encouraging the development of green housing loan products and financing of green loan objectives by the banking sector. Pursuant to the amendment, from April 2023, no disbursement fee or fee and other costs related to the verification of the green loan objective may be charged in case of green loan objectives that are in line with the Green Preferential Capital Requirement Program of the MNB. The creditor will be obliged to assume on a one-time basis the cost of the Authentic Energy Certificate charged to the customer. In the case of certified fulfilment of the green loan objective, the lender will have the opportunity to provide a green interest rate discount. Under the new framework, debtors can achieve their green housing goal under much more preferential conditions: in the case of a HUF 20 million, 20-year loan with an interest rate of 9 percent, they can enjoy a HUF 100,000 advantage when taking out a loan, and with an interest rate discount of 1 percentage point, they can achieve a HUF 3 million lower repayment amount during the term.
In order to minimize the parts of the application process for housing loans that require personal presence, to reduce the administrative burdens and to support the wider spread of online lending processes, the MNB also decided to direct the CCHL lending processes into the online space. Based on this, from January 1, 2024, for all CCHL loans, customers will have the opportunity to electronically complete the loan application process prior to signing the contract (via email and on the lender's online platform), ensuring that they only need to appear in person at the bank branch once for the time of the contract conclusion. In order to ensure fast and efficient administration, the creditor will also, at the client's request, ensure that the notarial process is carried out on the same day and location as the contract is concluded if the client undertakes the related costs charged by the notary.
Since their launch in 2017, CCHL products have become the defining, standard products of the housing loan market and have greatly contributed to the reduction of the interest rate risk of the housing loan portfolio, as well as to the reduction of interest spreads. By the third quarter of 2022, banks had already provided around 185,000 Certified Consumer-Friendly Housing Loans from the launch of the product, amounting to more than HUF 2,600 billion, and their market share within new housing loans had reached 60 percent. The current amendments can ensure that the products become even more widely available and contribute as much as possible to the MNB's financial stability, consumer protection and sustainability goals.
More information about the CCHL certification framework is available at the following link: Certified Consumer-Friendly Housing Loan (minositetthitel.hu).