Template-Type: ReDIF-Article 1.0

Author-Name: Zsombor Incze
Author-Workplace-Name: University of Miskolc, OTP Bank Retail Division
Author-Email: zsombor.incze@incze.hu
Author-Person: 

Title: An Alternative for Future Lending: Income-Linked Repayments

Abstract: The study presents the most typical domestic and international trends in mortgage
lending models and product development through a literature review of their
historical evolution. It concludes that innovations concerning the basic structure of
mortgage loan products have not spread in the Hungarian market, although recent
academic literature has proposed such developments. Building on one of these
academic innovations, a mortgage product based on income variation over the
career cycle is developed. This product is examined through the Hungarian medical
wage scale and the Magyar Nemzeti Bank's housing affordability methodology.
The findings suggest that, with timely and forward-looking financial planning,
a household consisting of early-career physicians could potentially afford to purchase
a home, suitable for raising children, as their first property.

Classification-JEL: G20, G21, G50, G51
Keywords: mortgage loan, career cycle, instalment, house purchase, housing affordability
Pages: 95-122
Volume: 24
Issue: 3
Year: 2025
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-3-st5-incze.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:24:y:2025:i:3:p:95-122