In order to stimulate banking competition, with financial stability and consumer protection aspects in mind, the MNB introduced the Certified Consumer-friendly Housing Loan (CCHL) certification from June 2017. The purpose of the program was to strengthen the transparency and comparability of loan products, thereby increasing the intensity of banking competition and promoting the spread of longer-term fixed interest rate products.
The certification, which functions as a trademark, could only be obtained for banks housing loan products that meet the conditions specified in the certification framework. Qualified bank housing loans are exclusively with:
- annuity repayments,
- an interest rate fixed for at least 5 years or until the end of the term,
- an interest mark-up above the reference interest rate of at most 3.5 percentage points.
The fees of the CCHL loans, such as the disbursement and prepayment fees, are more favourable than the legal maximums, and the deadlines available for the administration of housing loans are also maximized.
In order to promote the energy modernization of the residential real estate stock, the development of dedicated green housing loan products, and to encourage banking sector financing of green credit goals, the MNB decided to introduce Certified Consumer-friendly Housing Loans (CCHL) with a dedicated green loan objective from April 1, 2023.
In the case of the following green loan objectives defined in the Certification Framework, no disbursement fee, nor fees and other costs related to the verification of the green credit objective can be charged:
1) construction or purchase of a new apartment, purchase of a building plot for the purpose of building a new apartment (if the new apartment will be built within 4 years of the purchase of the plot), as well as the construction or purchase of a car storage or storage unit connected to the new apartment (at the same time as the new apartment), if the calculated value of the total energy characteristic (primary energy demand) determined according to TNM Decree 7/2006 (V.24.) on the determination of the energy characteristics of buildings is no more than 80 kWh/m²/year, and the Energy Efficiency Certificate (hereinafter: EEC) has an energetic quality classification of "BB" or better according to Government Decree 176/2008 (VI.30.) on the energy certification of buildings or based on the preliminary building energy calculations specified in the architectural-technical documentation according to 312/2012. (XI.8.) government decree; or
2) renovation of a used residential building that:
- at the time of acceptance of the loan application it concerns a residential building classified worse than "BB" according to the EEC, and based on the newly issued EEC as a result of the renovation the classification of the residential building reaches or exceeds the "BB" rating, and the total energy characteristic of the renovated residential building does not exceed the level of 80 kWh/m²/year; or
- based on the aggregated energy characteristic included in the newly issued EEC, compared to the aggregate energy characteristic included in the EEC valid at the time the loan application was accepted, the primary energy demand resulted in a reduction of at least 30%; or
3) sale and purchase of a used residential building on which Renovation according to point 2) is carried out after the conclusion of the loan agreement; or
4) implementation of one or more of the following Renovation measures on residential buildings (even rated lower than "BB"):
- Installation of solar photovoltaic modules or solar hot water panels
- Installation of ground-source, air-water, air-air heat pumps
- Installation of wind turbines
- Installation of thermal and electric energy storage units
- Thermal insulation for building delimiting structures
- Replacement of external doors and windows with energy efficient doors and windows
- Installation of shading technology
- Installation, replacement or renovation of heating, cooling or ventilation systems, in-cluding connection to the district heating system
- Installation of efficient lighting appliances and systems
- Installation of low-flow kitchen, and sanitary water fittings
- Installation of third-generation smart meters for electricity load monitoring
- Installation of zoned thermostat systems, smart thermostat systems and sensoring equipment (e.g. motion and day light control)
- Installation of Building Management Systems (BMS)
In the case of green loan objectives, the credit provider will assume the one-time cost of the Energy Efficiency Certificate to the debtor, if the preparation of an Energy Efficiency Certificate is necessary to prove the fulfilment of the green loan objective and the borrower is responsible for its cost.
In addition, lenders can also provide a green interest rate discount in the case of certified fulfilment of green loan objective.
Green requirements of the Certified Consumer-friendly Housing Loan framework
More information about the CCHL certification framework is available at the following link (only in Hungarian):