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.

• Home Start Program: Hungarian homebuyer demand hits record high in August

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.

It is equally important to factor in additional costs associated with purchasing a property, such as moving, furnishing, or valuation fees, when drawing up a budget.

Home Start can be combined with other support schemes

The programme can be combined with other schemes, such as CSOK Plus. This can make higher loan amounts accessible and allow certain tax reliefs to be utilised.

The application process is no longer than for other state-supported loans, but banks offer faster processing through pre-approval. This not only clarifies eligibility but also enables clients to start targeted property searches.

The Home Start Program also introduces property value limits. For flats, the purchase price cannot exceed HUF 100 million; for houses, HUF 150 million. The price per square metre is capped at HUF 1.5 million.

The programme is also flexible regarding ownership issues. Applicants may have a previous property, provided its value does not exceed HUF 15 million. Ownership must be verified through a valuation or a sales contract. Even if someone previously owned up to 50% of a property, they are not automatically excluded, and properties subject to usufruct are not a disqualifying factor.

Some misunderstandings around Home Start

There are many misunderstandings regarding the 10% personal contribution, which does not automatically guarantee eligibility. This benefit is only available if the applicant’s property ownership does not exceed 49%. Additionally, it is possible that a person’s income may not allow them to take out a loan that would otherwise be available with a 10% contribution.

Competition between banks is significant, so it is worth comparing offers carefully. Some institutions may waive fees or provide special promotions, while further benefits may be available over the term of the loan.