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The scheme offers interest rates capped at 3% for new homes and 5% for resale properties.
The newly published government decree changes financing conditions for first-time buyers, removing the requirement for two years of social insurance coverage while introducing stricter age and residency conditions, OVB said.
Under Otthon Start, both new and resale homes qualified for loans with interest rates capped at 3%.
For a HUF 50 mln loan over 25 years, monthly repayments would be approximately HUF 237,000 at 3% interest, compared with around HUF 292,000 at 5%.
The difference amounts to nearly HUF 55,000 a month, or approximately HUF 16.5 mln over the full term, assuming the interest rate remains unchanged.
Higher repayments could also affect creditworthiness, meaning some applicants may qualify for a smaller loan on the same income.
The removal of the social insurance requirement could open the program to buyers previously excluded from Otthon Start. Applicants must nevertheless meet the remaining eligibility conditions and pass lenders’ credit assessments.
Wekerle Plusz supports first-home purchases by applicants aged 18 to 45. As a general rule, applicants must not currently hold, or previously have held, an ownership stake of at least 50% in a residential property.
Exceptions apply, including under certain conditions for applicants who previously owned property worth no more than HUF 30 mln.
Buyers must register their address at the property within the prescribed deadline and, as a general rule, live there as their primary residence for five years. Restrictions also apply to allowing others to use the property and to its sale.
A down payment of at least 10% is required, although additional collateral may allow a departure from this requirement within applicable lending rules.
The program can finance the purchase or construction of apartments worth up to HUF 100 mln, or single-dwelling residential buildings, farmsteads and agricultural estate centers worth up to HUF 150 mln.
The initial price ceiling is HUF 1.5 mln per sqm, including VAT.
The maximum loan remains HUF 50 mln, with a term of up to 25 years. Subject to statutory conditions, subsidized interest can be available throughout the loan term, for a maximum of 25 years.
The rules take effect Oct. 28. Transitional provisions allow Otthon Start applications until Nov. 15 if the purchase contract is signed by Oct. 31. For construction projects, the building permit application or simplified notification must have been submitted by that date.
“The introduction of Wekerle Plusz changes the conditions of subsidized housing loans in several respects. Removing the social insurance requirement could make subsidized loans available to more people. Young people starting their careers who have sufficient income and meet banks’ employment requirements may therefore be able to apply independently, without parental assistance as co-borrowers,” said Csaba Bedő, head of banking at OVB Magyarország.
“However, they should also examine the detailed rules carefully. An expert can provide substantial assistance from the early planning stage, even before a property purchase, using their experience and expertise to help applicants navigate the new rules, assess their creditworthiness and find a financing solution suited to their individual circumstances.”
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