Details revealed about the brand-new home buying scheme set to boost the property market in Hungary
The government has published a draft decree on the Home Start Programme, a subsidised credit scheme for first-time home buyers.
New programme can boost property market
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.
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The scheme is set to start on 1 September
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.
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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.
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