MNB Raises Income Threshold for Upper Payment-to-income Ratio
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The National Bank of Hungary (MNB) on Friday said it decided to raise the income threshold for the upper, 60% payment-to-income ratio from HUF 500,000 to HUF 600,000 from July 1, according to a report by state news wire MTI.
The measure was taken because of the high inflation environment and nominal wage dynamics, the central bank and market regulator said.
A 50% payment-to-income ratio applies to borrowers with incomes under the threshold.
MNB also decided to raise the threshold for smaller loans exempt from the payment-to-income ratio requirement from HUF 300,000 to HUF 450,000.
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