The National Bank of Hungary (MNB) has adopted targeted macroprudential changes for the domestic real estate and mortgage lending market, including a new 1% systemic risk capital buffer for banks’ residential and commercial real estate exposures from 1 January 2026, alongside updates to borrower-based limits and mortgage funding requirements. The existing systemic risk buffer (SyRB) framework activated on 1 July 2024 will be repealed and replaced by a forward-looking, sectoral SyRB applying to exposures to domestic parties secured by mortgages on residential or commercial property in Hungary. Borrower-based measures will also be adjusted: the age limit of 41 for first-time homebuyers to access a 90% loan-to-value (LTV) ratio will be removed from the day after publication in the Hungarian Official Gazette, and lenders will be required to identify eligible first-time homebuyers with less administrative burden via property registry queries from December 2025. Reflecting nominal wage growth, the income threshold for the higher debt-service-to-income (DSTI) cap (up to 60%) will rise from HUF 600,000 to HUF 800,000, and the small-loan exemption threshold will increase from HUF 450,000 to HUF 550,000, with these and other technical adjustments taking effect from 1 January 2026. For mortgage funding, the MNB will further strengthen the mortgage funding adequacy ratio (MFAR) regime from October 2026 by reducing interbank mortgage bond purchases, requiring stock exchange listing for newly issued mortgage bonds, and increasing the maturity of new stable funds. The mortgage stock threshold for exemption from MFAR will increase from HUF 40 billion to HUF 100 billion, and mortgage-backed securities other than mortgage bonds will also qualify as stable funding. The borrower-based regulation is expected to be published in the Hungarian Official Gazette in the coming days following a Financial Stability Board decision, while the SyRB and MFAR regulations are to be finalized in the coming weeks alongside consultations with credit institutions.
National Bank of Hungary 2025-09-01
National Bank of Hungary sets a 1% sectoral systemic risk buffer for real estate exposures and revises mortgage lending and funding rules
The National Bank of Hungary has introduced macroprudential changes for real estate and mortgage lending, including a 1% systemic risk capital buffer for banks' real estate exposures effective 1 January 2026. Adjustments include removing the age limit for first-time homebuyers to access a 90% loan-to-value ratio and raising the income threshold for a higher debt-service-to-income cap. The mortgage funding adequacy ratio regime will be strengthened from October 2026, with increased requirements for mortgage bond listings and stable funding.