## OTP Raises mortgage rates, Signaling Potential Industry Trend
Hungary’s largest bank, OTP, has announced an increase in interest rates for its home loans, marking a potential shift in the mortgage market. Effective Tuesday, the initial interest rate on standard mortgage loans rose by 0.5 percentage points to 8.49 percent, while the 1×1 loan, known for its more favorable terms, now stands at 7.99 percent.
This move comes amidst a broader trend of rising reference interest rates, which are influencing lending costs across the board. According to Bank360 analysts, OTP’s decision could set a precedent for other banks to follow suit. [[3]]
While the rate hike affects most borrowers, OTP offers tiered interest rates based on income. Applicants wiht higher monthly incomes can secure more favorable terms. For instance, a monthly credit of at least 700,000 forints now carries an interest rate of 8.39 percent, with the potential to drop below 8 percent for even higher incomes.
The bank clarified that the interest rate increase does not apply to existing open-use mortgage loans or those benefiting from state interest subsidies, such as the CSOK Plusz program. [[1]]
The 20-year BIRS benchmark, a key indicator of long-term interest rates, currently sits at 7.05 percent,having already reached 7.31 earlier this year. The 10-year BIRS, another crucial benchmark, stands at 6.85 percent,having touched 7.13 in 2025. These figures highlight the notable upward trajectory of interest rates over the past year, exceeding 6 percent for both benchmarks. [[2]]
This latest progress underscores the evolving landscape of the Hungarian mortgage market, with rising interest rates perhaps impacting affordability and influencing borrowing decisions.
Rising Mortgage Rates in Hungary: An Expert Interview
time.news Editor: Hungary’s largest bank, OTP, has just announced an increase in mortgage rates, pushing initial rates to 8.49% for standard loans. This move has sparked concern among potential homebuyers. To shed some light on this progress and its potential implications, we spoke with [Expert Name], a leading expert in the Hungarian mortgage market.
Time.news Editor: Mr./Ms. [Expert Name], thank you for joining us. can you explain the importance of OTP’s recent decision?
[Expert Name]: OTP’s decision to raise mortgage rates is indeed noteworthy, as it indicates a potential shift in the overall Hungarian mortgage market. being the largest bank, OTP often sets a precedent for other lenders, which we might see following suit in the coming weeks and months.
Time.news Editor: What are the primary factors driving this increase in mortgage rates?
[Expert Name]: This rate hike is largely driven by the broader trend of rising reference interest rates.As you know,the Hungarian National Bank has been increasing its base rate to combat inflation,and thes changes inevitably trickle down to lending costs,including mortgages.
Time.news editor: How do these rising mortgage rates impact potential homebuyers in Hungary?
[Expert Name]: Regrettably, rising mortgage rates make homeownership more expensive.Borrowers will have to pay more in interest payments over the life of their loan, perhaps impacting their affordability. This could lead to a slowdown in the housing market as fewer people can comfortably afford to buy.
Time.news Editor: OTP is offering tiered interest rates based on income. Does this offer some relief for certain segments?
[Expert Name]: Yes, OTP’s tiered system does provide a degree of flexibility. Borrowers with higher monthly incomes can secure more favorable interest rates, making homeownership more achievable for them. Though,its crucial to remember that this benefit is not equally accessible to all income levels.
Time.news Editor: What advice would you give to potential homebuyers in this current environment?
[Expert Name]: My advice is to carefully assess your financial situation and affordability before committing to a mortgage.
Shop around and compare interest rates from different lenders. Don’t be afraid to negotiate for a better deal. Additionally, consider exploring government schemes like CSOK Plusz, which can help reduce the overall cost of homeownership.
Time.news Editor: Thank you for your insights, [Expert Name]. This details is invaluable for anyone considering homeownership in Hungary today.
