New initiative aims to assist first-time homebuyers in Hungary

The Hungarian Banking Association said it was a “partner” in efforts to help young Hungarians buy their first home in a statement issued on Monday.

Banking association to help first-time homebuyers

The association acknowledged the national economy minister’s recent announcement on the introduction of a voluntary 5pc cap on home mortgages, adding that the cap would apply to first-time homebuyers under 35 for purchases of homes up to 60sqm with an A+ energy rating at a cost of no more than HUF 1,200,000/sqm.

The voluntary cap is expected to be offered between April 1 and October 31, 2025 and remain in place for the first five years of the terms of loans signed during the period.

The association said it trusted that the low rates would encourage the construction of new homes.

Hungarian government welcomes voluntary mortgage rate cap

The government welcomes the Hungarian Banking Association’s position supporting a voluntary 5pc cap on mortgage loans for young, first-time homebuyers, the National Economy Ministry said on Monday.

The ministry acknowledged the association’s statement, issued earlier on Monday, offering the mortgage cap to first-time homebuyers under 35 from April 1 until October 31, 2025, conditional on purchases of homes no larger than 60sqm at a price of no more than HUF 1,200,000/sqm.

To support the supply side on the home market, the ministry said the government would launch a new home development capital programme under which local property funds could get up to HUF 30bn of state support as long as the state’s share of the funds doesn’t exceed 70pc. The funds may be channeled to construction of new homes, rental homes or student dormitories. Over HUF 100bn is expected to flow into the property market as a result, the ministry said.

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