Hungary has unveiled an extensive new housing programme offering discounted mortgages for younger buyers, state subsidies for energy-efficient home renovations and the return of government-backed housing savings. The Wekerle programme, announced by Prime Minister Péter Magyar’s government, is designed to make homes more affordable while encouraging construction and modernisation across the country.
The measures will be introduced in stages from October 2026, with the wider programme expected to run until 2030. The government also plans to expand affordable rental housing and student accommodation, using both domestic and European Union funding.
Cheaper mortgages for buyers aged 18–45
The new Wekerle+ Purchase and Construction Loan becomes available from 28 October, although individual banks may need a few extra days to prepare their systems.
Applicants aged 18–45 can apply for a fixed-rate mortgage to purchase or build a home. The annual interest rate will be 3% for new properties and 5% for existing homes, with interest-rate support available for up to 25 years.
The scheme is not conditional on marriage or having children. However, the property must serve as the buyer’s home rather than an investment, and borrowers will be required to live there for five years.
The government has introduced price limits to prevent public money from supporting luxury property purchases. The maximum eligible price is HUF 100 million for an apartment and HUF 150 million for a family house, while the price per square metre cannot exceed HUF 1.5 million.
Parents or siblings may also join an application as co-borrowers if the applicant’s income is insufficient, although they will not acquire ownership of the property through this arrangement.
Existing Otthon Start (Home Start) mortgage contracts will remain valid. Some buyers who have already signed purchase agreements may also have a 15-day transition period to switch to the new scheme, subject to the applicable conditions.
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HUF 633 billion for home renovations
One of the programme’s largest elements is a HUF 633 billion (EUR 1.7 billion) funding package for energy-efficiency improvements, covering everything from panel blocks and brick-built apartment buildings to detached houses.
The renovation support will help households pay for insulation, window and door replacement, shading systems, more efficient split air conditioners and, in some cases, solar panels. The government also plans to support heating-system upgrades.
The Wekerle+ Renovation Support and Loan scheme will offer fixed-rate loans at 3% interest, with the maximum loan amount rising from HUF 6 million to HUF 15 million. Depending on the property’s energy performance, applicants may also qualify for a non-repayable grant covering 30–50% of eligible costs, up to HUF 7.5 million.
To qualify, renovations must deliver energy savings of at least 30%. Unlike the purchase mortgage, the renovation scheme is not restricted by age, marital status or parenthood, and will be available across Hungary.
The programme is expected to launch in stages in 2027, with support for family houses scheduled to begin in February and applications for apartment-building renovations opening in March.
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State-backed housing savings return in 2027
Hungary will also reintroduce state-supported housing savings from January 2027, reviving a system whose previous government subsidy was abolished in 2018.
Under the Wekerle+ Housing Savings scheme, the state will supplement eligible deposits for up to ten years. During the first five years, the subsidy will cover 10% of contributions, up to HUF 120,000 annually. From the sixth to the tenth year, the rate will rise to 20%, with an annual cap of HUF 240,000.
The maximum subsidy will therefore be available to savers who deposit HUF 100,000 per month. Over ten years, the government contribution could reach HUF 1.8 million, excluding interest and subject to the scheme’s conditions.
Participating banks must offer at least 3% interest on savings. The money can be used to purchase a property, finance renovations or cover a mortgage deposit. The scheme will be open regardless of age, location or family status.
Affordable rentals and student accommodation planned
The Wekerle Sándor Housing and Dormitory Construction Programme will address another persistent problem: the shortage of affordable rental homes and student accommodation.
The government plans to allocate HUF 30 billion in EU funding in the first year, followed by a further EUR 550 million over the next three years. New housing is expected to be concentrated in areas with good public transport connections.
Together, these measures are intended to increase the supply of homes while improving access to both home ownership and affordable renting.
Government expects no major construction price surge
Prime Minister Péter Magyar said the government does not expect the programme to drive up construction and renovation prices significantly. Rather than introducing price caps, the government intends to spread support across different groups and types of housing.
The administration also expects smaller businesses to benefit indirectly, as local construction companies and contractors carry out much of the building and renovation work.
The funding for energy-efficiency improvements will partly come from EU Cohesion Fund money previously frozen and subsequently brought back to Hungary, according to the government’s announcement.
The Wekerle programme is intended to create a more sustainable housing market, combining support for buyers with investment in existing homes, new construction and affordable rentals.
Where to find the details: The government has published information about the schemes on the official Wekerle programme website. As the measures launch in stages, applicants should check the relevant eligibility rules and bank requirements before applying.
