Template-Type: ReDIF-Article 1.0 Author-Name: Gabriella Grosz Author-Workplace-Name: Magyar Nemzeti Bank Author-Email: groszg@mnb.hu Author-Person: Author-Name: Gabor Izsak Author-Workplace-Name: Magyar Nemzeti Bank Author-Email: izsakg@mnb.hu Author-Person: Author-Name: Alexandr Maxim Palicz Author-Workplace-Name: Magyar Nemzeti Bank Author-Email: palicza@mnb.hu Author-Person: Author-Name: Katinka Szasz Author-Workplace-Name: Magyar Nemzeti Bank Author-Email: szaszk@mnb.hu Author-Person: Title: Improving Access to Credit for First-Time Home Buyers under Borrower-Based Measures Abstract: As a result of the dynamic rise in real estate prices in recent years, house prices, and therefore the minimum down payment required to obtain a mortgage, more than tripled by 2022 compared to 2014. This led to a deterioration of access to borrowing opportunities typically for young first-time home buyers aged 35 or younger, especially among clients who are not eligible for family support schemes. In this paper, we provide a detailed overview of the potential side effects of the borrower-based measure framework on first-time home buyers. Relative to their credit risk, these clients may be more severely affected by borrower-based measures, generating negative second-round effects. Therefore, in their case preferential limits may be applied, in line with international practice, notably on the level of down payment. However, when making such a decision, it is important to take into account the development of risks in the housing and credit markets and the macroeconomic environment. Classification-JEL: D14, E32, E51, E58, G21, R31 Keywords: financial stability, real estate overheatedness, excessive lending, macroprudential policy, borrower-based measures, loan-to-value ratio, debt-service-to-income ratio, first-time home buyer Pages: 25-53 Volume: 22 Issue: 2 Year: 2023 File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-22-2-st1-grosz-izsak-palicz-szasz.pdf File-Format: Application/pdf Handle: RePEc:mnb:finrev:v:22:y:2023:i:2:p:25-53