Hungary’s new Home Start loan changes last-minute: Here’s what you need to know

The government has published a decree in the Hungarian Gazette that not only fine-tunes the brand-new Home Start Program but also aligns it with existing housing subsidies such as CSOK Plus, Rural CSOK, and the Baby Expecting Loan (Babaváró). The rules will take effect on 1 September, the very same day the program launches.

Home Start rules tightened before the launch

The Home Start loan, offering a fixed 3% interest rate, is set to kick off in September, but the government has already introduced last-minute changes. Key points include:

• The loan can only be taken once, even if the borrower has already repaid it in full.
• Those who have appeared as a co-borrower in another Home Start loan are barred from applying again.
• Only a spouse or parent can be added as a co-borrower, and parents cannot acquire ownership rights in the property.
• Married couples can involve both sets of parents as co-borrowers.
• The state interest subsidy cannot exceed the actual interest rate set by the bank.
• Life partners (unmarried couples) are excluded as co-borrowers, meaning they cannot benefit from the more favorable rules.
• Borrowers buying homes in shared ownership properties (such as semi-detached houses) are not disqualified as long as they become sole owners of their part.

Housing subsidies brought under one roof

The new decree also introduces unified rules across the government’s housing and family support schemes:

• For both CSOK Plus and Rural CSOK, property price caps are set at HUF 100 million for apartments and HUF 150 million for houses.
• CSOK Plus can now be used to replace an existing Home Start loan, making the two programs interchangeable. This means borrowers can still benefit from debt forgiveness, e.g., HUF 10 million written off per child from the second child onward.
• Baby Expecting Loan (Babaváró): parents who missed the deadline to request repayment suspension after will get another 60 days from 1 October 2025 to apply.
• With Rural CSOK, the subsidised loan (HUF 10–15 million depending on the number of children) can also be combined with Home Start, not just CSOK Plus.

The down payment issue: stricter in practice

According to government communication, borrowers could access Home Start loans with just a 10% down payment. However, in practice, the Hungarian National Bank (MNB) rules are stricter. Currently,

only borrowers under 41 years of age, buying/constructing an energy-efficient home, qualify for the 10% minimum.

Minister Gergely Gulyás has indicated that the government wants to make the 10% rule apply more broadly. The central bank is expected to clarify the conditions in the coming days after the program’s launch.

Cheaper loans, higher housing prices?

The Home Start’s fixed 3% interest rate is well below market levels, resulting in significantly lower monthly installments compared to commercial mortgages. However, experts warn that the program could drive housing prices even higher, while putting a heavy burden on the state budget.

Read also:

• Analysts predict property prices in Hungary will soar thanks to a new government scheme: here are the figures
• New decree fast-tracks house-building in Hungary from this autumn: it may lead to property price fall