Laszlo Balogh, ingatlan.com's chief economist, said monthly payments on the Home Start credit would be around HUF 237,000 for the maximum HUF 50m loan, lower than the HUF 250,000 average monthly rent for a 50sqm flat in the capital.

He predicted that the Home Start programme could boost the popularity of 30-45sqm homes in Budapest and other big cities around the country.

From September, the Home Start programme will offer first-time home buyers fixed 3pc loans up to HUF 50m. The value of homes for which the credit may be used is capped at HUF 1.5m/sqm.

Govt publishes draft decree on first-time home buyers credit scheme

The government has published a draft decree on the Home Start Programme, a subsidised credit scheme for first-time home buyers.

In a statement issued late Monday, the Prime Minister's Office said the programme targeted primarily young Hungarians, adding that it could help tens of thousands buy their first home in the coming years.

The 3pc fixed-rate credit up to HUF 50m will be available, from September 1, to all first-time home buyers, regardless of age or family status.

Eligibility extends to borrowers who have not owned residential property for the previous ten years, owners of real estate with a value under HUF 15m and people whose ownership stake in a home does not exceed 50pc. Eligibility also extends to owners of property slated for demolition or, in some cases, encumbered with usufruct.

In the case of applications for the credit by couples, either married or in civil partnerships, only one person must meet the ownership eligibility requirements.

Borrowers must be 18 or older, but show their social security contributions have been covered for a period of at least two years. Borrowers must certify they owe no back taxes and have no criminal record. They must also comply with lenders' conditions for creditworthiness.
 

Prices of eligible homes in the scheme are capped at HUF 100m for ones in multidwelling buildings and HUF 150m for detached houses. The area-based price limit is set at HUF 1.5m per square metre.

The down payment for credit in the scheme is 10pc.

Applications for the credit will be accepted from September 1, according to the draft decree.

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com

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