The outstanding lending stock of Hungarian households surged by 9.4% to a record of HUF11.1 trillion (€27.3bn) by the end of 2024, according to data from the National Bank. Compared to 2017, the stock has doubled from HUF5.8 trillion.

Families took out 2.5 times more mortgage loans and 1.5 times more personal loans than in 2023. Despite the uptick in the retail credit market, household indebtedness vis-a-vis GDP is the second-lowest in the EU behind Romania, leaving more room to grow.

Analysts link the record-high borrowing levels to falling interest rates, rising real wages and surging real estate prices. At the lower income levels, many relied on loans to manage daily expenses. The retail loan market is projected to remain strong in 2025, supported by growing incomes and sustained household spending.

New mortgage contracts exceeded HUF1.51 trillion last year, surpassing the previous record of HUF1.3 trillion in 2021 bringing the total stock to HUF5.65 trillion.

At the beginning of the year, the average mortgage loan amount rose from HUF13.5mn to HUF19mn by year-end, explained by the surging home prices and the subsequent increase in loan requests. Subsidised loans made up of all a quarter of all new mortgage loans last year.

Demand for commercial loans rose steeply as an increasing number of Hungarians had to cover their expenses from borrowed funds amid rising living costs and economic uncertainty. Personal loan stock also hit a record high, surging by more than 14% to HUF1.5 trillion, or 14% of the total household debt.

Around 1.3mn carried expensive overdraft or credit card debt, with an average HUF240,000 in value.

The stock of the general-purpose prenatal baby loan with zero percent interest rose at a smaller pace to HUF2.2 trillion, or 20% of total retail debt.

The retail loan market is expected to maintain its strong performance in 2025, driven by rising incomes and household consumption and robust demand on the property market. Additionally, the new subsidised worker's loans for young working Hungarians programme is expected to generate fresh demand.