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Growing interest in Hungary’s Home Start Program thanks to flexible conditions
In recent years, those entering the housing market have often felt that the conditions attached to state-supported financing options were too restrictive. However, the Home Start Program, launched in September, can now open the path to home ownership even for those who previously did not meet the strict eligibility requirements.
The Home Start Program, which started in September 2024, attracted significant attention even before its official launch. In the weeks following the announcement of the scheme, many were already assessing whether they would be eligible for the favourable loan. As time went on, the number of actual loan applications increased, particularly from October onwards, according to Tibor Kói, Head of Retail Loan Products at CIB Bank, speaking to hvg.
Flexible conditions, but a strict maximum interest rate
The key to the programme’s success lies in the greater flexibility it offers compared with previous state-supported schemes. It allows for loans of up to HUF 50 million with a maximum term of 25 years. Eligibility requires applicants to be over 18, have a verifiable income, and hold at least two years of valid social security contributions.
The loan is available even to those who do not plan to marry or have children, ensuring that individuals previously excluded on these grounds can now access favourable funding. The supported loan can be used to purchase new or second-hand property, or for construction, making it a relevant option for practically any life situation.
The Otthon Start Program retains the flexibility common to market loans, which many clients value, while capping the interest rate at a maximum of 3%. This means that borrowers can take out a larger amount for the same monthly repayment, providing significant relief for those who might otherwise struggle to move from renting to owning a property given current property prices.
Careful planning is key
Tibor Kói also emphasises that careful financial planning is particularly important when buying a first home. It is not enough to calculate the monthly repayment alone; it is worth considering whether current expenses, such as rent, can be redirected to cover the loan.
