Notes: - VAT cut (from January 2016 VAT on new dwellings will be 5% instead of 27%). - Probably the most important regulatory change to residential mortgage lending in recent years in Hungary was the conversion of foreign currency (mostly CHF) denominated mortgage loans to HUF in 2015. According to a legislative package all residential foreign currency denominated mortgage loans were converted to HUF in the period between March – April 2015. o Following the conversion, at the end of Q2 2015 the proportion of HUF loans in the outstanding residential mortgage loan portfolio was already more than 99% (in exceptional cases debtors could keep their foreign currency loan exposure). o Based on the decision of the Curia, the Hungarian Supreme Court, lending banks also had to refund to debtors the so called “unjustified ” interest rate increases and conversion rate differences (if applied) from the past. o The conversion rate for the CHF denominated mortgage loans was already set in 2014, before the Swiss National Bank decided to drop its peg against the Euro (in January 2015). o The conversion at a prefixed rate of foreign currency mortgages and the settlement based on the Curia’s decision both contributed to the approximately 13% decrease of the outstanding mortgage loan portfolio in 2015 (compared to the previous year).

Notes: 16%

Notes: 16%

Notes: 16%

Notes: A transfer (stamp duty) tax of 2-4 % is to be paid by the Buyer to the National Tax Office. (2% until 4 Mio HUF, and 4% on all value over 4 Mio HUF) Legal fees may range from 0.5–1% of the property price. When the the property is sold through a Real estate agency, a further 2-3% is generally paid by the Seller. Buying a new flat is subject to VAT payment (5%).

Notes: A transfer (stamp duty) tax of 2-4 % is to be paid by the Buyer to the National Tax Office. (2% until 4 Mio HUF, and 4% on all value over 4 Mio HUF) Legal fees may range from 0.5–1% of the property price. When the the property is sold through a Real estate agency, a further 2-3% is generally paid by the Seller. Buying a new flat is subject to VAT payment (5%).

Notes: A transfer (stamp duty) tax of 2-4 % is to be paid by the Buyer to the National Tax Office. (2% until 4 Mio HUF, and 4% on all value over 4 Mio HUF) Legal fees may range from 0.5–1% of the property price. When the the property is sold through a Real estate agency, a further 2-3% is generally paid by the Seller. Buying a new flat is subject to VAT payment (5%).

Notes: Bausparkassen

Notes: Bausparkassen

Notes: BISZ Central Credit Information Plc.

Notes: BISZ Central Credit Information Plc.

Notes: BISZ Central Credit Information Plc.

Notes: BISZ Central Credit Information Plc.

Notes: Composition of loans extended to household sector. Tables 3.1-3.5

Notes: Composition of loans extended to household sector. Tables 3.1-3.5

Notes: Composition of loans extended to household sector. Tables 3.1-3.5

Notes: Composition of loans extended to household sector. Tables 3.1-3.5

Notes: Composition of loans extended to household sector. Tables 4.1-4.5

Notes: Composition of loans extended to household sector. Tables 4.1-4.5

Notes: Composition of loans extended to household sector. Tables 4.1-4.5

Notes: Composition of loans extended to household sector. Tables 4.1-4.5

Notes: Composition of loans extended to household sector. Tables 4.1-4.5

Notes: Figure is the national percentage

Notes: Figure is the national percentage

Notes: Figure is the national percentage

Notes: Figure is the national percentage

Notes: Figure is the national percentage

Notes: Figure is the national percentage

Notes: Figure is the national percentage

Notes: Figure is the national percentage

Notes: Figure is the national percentage

Notes: Figure is the national percentage

Notes: Government regulation

Notes: Government regulation

Notes: Government regulation

Notes: Government regulation enforced in January 2015

Notes: Government regulation enforced in January 2015

Notes: Government regulation enforced in January 2015

Notes: Governmental subsidies: For families with three or more children a lump sum subsidy of HUF 10 mn and a further HUF 10 mn subsidised loan with a max 3% interest rate is available, when they purchase a new dwelling. In case of families buying a used flat, a smaller lump sum subsidiy is also available depending on the number of kids. The subsidy in this case will vary between HUF 550,000 and max HUF 2,750,000. Bauspar System: Bausparen involves a contract on the part of a customer to save an agreed amount over a prescribed period in return for a commitment on the part of a credit institution to provide a loan, at pre-specified terms and of which the amount is dependent on the amount saved. Bausparen is characterized by fixed, below-market rates on savings and subsequent loans. By design, Bausparen attempts to insulate customers from financial market volatility.

Notes: In January 2016, Government reduced the VAT on newbuild dwellings from 27% to 5%. More significant increases are expected.

Notes: Law no. CLXII of 2009 on credit agreements for consumers

Notes: Law no. CLXII of 2009 on credit agreements for consumers

Notes: Law no. CLXII of 2009 on credit agreements for consumers

Notes: Law no. CLXII of 2009 on credit agreements for consumers

Notes: Law no. CLXII of 2009 on credit agreements for consumers

Notes: Law no. CLXII of 2009 on credit agreements for consumers

Notes: Law no. CLXII of 2009 on credit agreements for consumers

Notes: Law no. CLXII of 2009 on credit agreements for consumers

Notes: Law no. CLXII of 2009 on credit agreements for consumers

Notes: LTV limit of 75 percent on all mortgage loans, restriction of covered bonds funding to loans with an LTV of 70 percent or lower

Notes: LTV limit of 75 percent on all mortgage loans, restriction of covered bonds funding to loans with an LTV of 70 percent or lower

Notes: LTV limit of 75 percent on all mortgage loans, restriction of covered bonds funding to loans with an LTV of 70 percent or lower

Notes: LTV limit of 75 percent on all mortgage loans, restriction of covered bonds funding to loans with an LTV of 70 percent or lower

Notes: Securitization of mortgages is not used in Hungary; there is no legal framework

Notes: The maximum tax rate is 200 HUF per square meter per annum, or 3 % of the market prices of the asset. The due date is twice in a year: 15 of March and 15 of September. Only applies at municipal level.

Notes: The maximum tax rate is 200 HUF per square meter per annum, or 3 % of the market prices of the asset. The due date is twice in a year: 15 of March and 15 of September. Only applies at municipal level.

Notes: The maximum tax rate is 200 HUF per square meter per annum, or 3 % of the market prices of the asset. The due date is twice in a year: 15 of March and 15 of September. Only applies at municipal level.

Notes: Under Act CXXII of 2011 (KHR Act), anyone may request any financial institution (reference data provider) to provide official information (proprietary credit reports) about the data held on record about them in the Central Credit Information System (KHR), the parties registering those data, as well as the parties accessing the data, and the time and grounds of each access. Natural persons (individuals) and non-natural persons (businesses) may request proprietary credit reports without any restrictions, free of any charges or other fees.

Notes: Under Act CXXII of 2011 (KHR Act), anyone may request any financial institution (reference data provider) to provide official information (proprietary credit reports) about the data held on record about them in the Central Credit Information System (KHR), the parties registering those data, as well as the parties accessing the data, and the time and grounds of each access. Natural persons (individuals) and non-natural persons (businesses) may request proprietary credit reports without any restrictions, free of any charges or other fees.

Notes: Under Act CXXII of 2011 (KHR Act), anyone may request any financial institution (reference data provider) to provide official information (proprietary credit reports) about the data held on record about them in the Central Credit Information System (KHR), the parties registering those data, as well as the parties accessing the data, and the time and grounds of each access. Natural persons (individuals) and non-natural persons (businesses) may request proprietary credit reports without any restrictions, free of any charges or other fees.

Notes: Under Act CXXII of 2011 (KHR Act), anyone may request any financial institution (reference data provider) to provide official information (proprietary credit reports) about the data held on record about them in the Central Credit Information System (KHR), the parties registering those data, as well as the parties accessing the data, and the time and grounds of each access. Natural persons (individuals) and non-natural persons (businesses) may request proprietary credit reports without any restrictions, free of any charges or other fees.

Notes: Under Act CXXII of 2011 (KHR Act), anyone may request any financial institution (reference data provider) to provide official information (proprietary credit reports) about the data held on record about them in the Central Credit Information System (KHR), the parties registering those data, as well as the parties accessing the data, and the time and grounds of each access. Natural persons (individuals) and non-natural persons (businesses) may request proprietary credit reports without any restrictions, free of any charges or other fees.

Notes: Under Act CXXII of 2011 (KHR Act), anyone may request any financial institution (reference data provider) to provide official information (proprietary credit reports) about the data held on record about them in the Central Credit Information System (KHR), the parties registering those data, as well as the parties accessing the data, and the time and grounds of each access. Natural persons (individuals) and non-natural persons (businesses) may request proprietary credit reports without any restrictions, free of any charges or other fees.

Notes: Under Act CXXII of 2011 (KHR Act), anyone may request any financial institution (reference data provider) to provide official information (proprietary credit reports) about the data held on record about them in the Central Credit Information System (KHR), the parties registering those data, as well as the parties accessing the data, and the time and grounds of each access. Natural persons (individuals) and non-natural persons (businesses) may request proprietary credit reports without any restrictions, free of any charges or other fees.