The ministry acknowledged the association's statement, issued earlier on Monday, offering the mortgage cap to first-time homebuyers under 35 from April 1 until October 31, 2025, conditional on purchases of homes no larger than 60sqm at a price of no more than HUF 1,200,000/sqm.

To support the supply side on the home market, the ministry said the government would launch a new home development capital programme under which local property funds could get up to HUF 30bn of state support as long as the state's share of the funds doesn't exceed 70pc.

The funds may be channeled to construction of new homes, rental homes or student dormitories. Over HUF 100bn is expected to flow into the property market as a result, the ministry said.

Banking assoc 'partner' in effort to support first-time homebuyers

The Hungarian Banking Association said it was a "partner" in efforts to help young Hungarians buy their first home in a statement issued.

The association acknowledged the national economy minister's recent announcement on the introduction of a voluntary 5pc cap on home mortgages, adding that the cap would apply to first-time homebuyers under 35 for purchases of homes up to 60sqm with an A+ energy rating at a cost of no more than HUF 1,200,000/sqm.

The voluntary cap is expected to be offered between April 1 and October 31, 2025 and remain in place for the first five years of the terms of loans signed during the period.

The association said it trusted that the low rates would encourage the construction of new homes.
 

Source: 
MTI - The Hungarian News Agency, founded in 1881.

*********************************

You're very welcome to comment, discuss and enjoy more stories via our Facebook page: 
Facebook.com/XpatLoopNews + via XpatLoop’s groups: Budapest Expats / Expats Hungary

You can subscribe to our newsletter here: XpatLoop.com/Newsletters

Do you want your business to reach tens of thousands of potential high-value expat customers? Then just contact us here.