Hungary’s new home loan scheme lets you buy a flat for less than rent!

The Home Start Programme, a recently announced scheme offering subsidised credit to first-time home buyers, could help tens of thousands of young Hungarians purchase their own home, state secretary Miklós Panyi said after talks with the Hungarian Banking Association on Tuesday.

From September, the government will offer first-time home buyers loans of up to HUF 50 million (EUR 125,000) with fixed rates of 3%. The loans will be available to first-time home buyers regardless of age or family status.

Panyi said the banking association was involved with the drafting of the scheme, but there were still more details that needed to be hammered out. Work on fleshing out the rules for the credit is underway, he added.

Anna Florova, who heads the banking association’s retail lending working group, noted that subsidised credit accounted for 20-25% of home loans at present. She said that commercial banks were eager to participate in the Home Start Programme and were getting ready for the scheme’s launch on 1 September.

Panyi said instalments on Home Start loans could be even lower than monthly rents.

Read more about Hungary’s property market on Daily News Hungary!

Read also:

• Orbán unveils 3% home loan deal for first-time buyers – Here’s who can cash in
• Struggling to buy a home in Hungary? Orbán says help is coming this September