New ‘Otthon Start’ program aims to revitalise Hungary’s housing market, but a surprise group can reap most benefits

A new chapter may begin in Hungary’s housing market this September with the launch of the Otthon Start program. Offering fixed-rate mortgages at just 3 percent interest, this government-backed initiative could attract more homebuyers than ever before, experts say. Unlike some previous subsidies, the program is not only targeting first-time buyers but also supports those looking to move to a new home.

Will home movers benefit most from Otthon Start?

The program’s greatest strength is its predictability. While the average mortgage interest rate in Hungary currently stands at 6.91 percent—among the highest in the EU—the Otthon Start loan offers a significantly lower 3 percent fixed rate, providing a safer entry into the real estate market. According to an analysis by Századvég, this low-interest option appeals to two key groups: those willing to borrow at rates between 4–6 percent, and those who would only consider borrowing at 0–3 percent.

László Balogh, an expert at Ingatlan.com, believes the program’s impact could exceed all expectations, potentially boosting the number of property transactions by tens of thousands this fall. He noted that even in July, the site saw a noticeable jump in listings from private sellers, suggesting many owners now see a real chance to sell and move on.

Unlike previous programs, Otthon Start does not impose age or family status restrictions—unlike CSOK Plusz, for instance. This means it’s open not only to young people and those planning to have children. Borrowers can take out up to HUF 50 million (EUR 125,000), though eligibility criteria are strict. Applicants are assessed based on factors such as the length of their social security contribution period and whether they’ve previously owned a property.