Significant change coming for all in the Hungarian property market

Significant discounts can be expected when applying for green loans on the market with a view to energy saving when buying a property, the financial intermediary of Duna House has pointed out, based on a summary by Credipass.

According to their statement, the possibility to apply for green loans under the Funding for Growth Scheme (FGS) ended a year ago. However, some banks continue to offer green loans on favourable terms on the market. The statement pointed out that Hungary still has a large number of properties with poor energy rating, making the greening of the housing stock increasingly urgent.

“When looking for a property, it is becoming increasingly important for interested parties to know the energy characteristics of the property in question, and how much of an investment a major renovation would represent,”

the statement clears.

They also point out that, as of April this year, market green loans are now also available in the form of Certified Consumer-Friendly Housing Loans. With the extension of the loan objectives, this type of loan can be applied not only for the construction of new housing, but also for the modernisation of second-hand property.

The green credit target must be verified by an energy certificate, the cost of which is covered by the bank, for example in the case of a consumer-friendly loan. The bank must check that the green credit targets have been met within 12 months, either by an on-site inspection or by requesting invoices for the work carried out.

It is also important to note that if the debtor fails to meet the green credit target set in the individual contract within the deadline set by the lending bank, the bank may retroactively enforce the disbursement fee, the cost of the Energy Performance Certificate (EPC) and the additional fees and costs related to the green credit target, Duna House summarised, as reported by MTI.