New Home Purchase Subsidy Scheme Set to Launch in Hungary

  • 26 Oct 2023 5:33 AM
  • Hungary Matters
New Home Purchase Subsidy Scheme Set to Launch in Hungary
The government will launch a new home purchase subsidy scheme dubbed CSOK Plus to help couples in purchasing their first home or in expanding it to accommodate a growing family, the minister of culture and innovation said at a government press briefing.

The scheme will be available for settlements with populations over 5,000 citizens, János Csák said.

The scheme offers a loan of 15 million forints (EUR 38,960) for couples raising one child, 30 million for families with two children and 50 million for those with 3 children, at a 3% interest rate, the minister said.

The term of the loan will be between 10 and 25 years, he said, and will be available for families where the mother is younger than 41, he said.

To forestall skyrocketing prices, the government is imposing a price cap on the real estate eligible for home purchase subsidies, he said.

First homes cannot cost more than 80 million forints, Csák said. For properties purchased to accommodate a growing family, the cap is at 150 million, he added.

Families can apply for a 12-month moratorium after the birth of the first child, and will have 10 million forints deducted from the initial capital after the second and every subsequent child, he said.

Since its launch in 2015, some 233,000 families have applied and received home purchase subsidies, and the government has spent 754 billion forints on the scheme, he said.

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