MNB estimates 1.6 mln households eligible for revamped home purchase subsidy scheme

Analysis

pexels

The National Bank of Hungary (MNB) estimates, based on a household questionnaire, that 1.6 million households or 40% of Hungaryʼs 4 million households are eligible to participate in the governmentʼs revamped home purchase subsidy scheme for families with children, available since February 2016, the MNB said in its “Trends in Lending” report, published today.

The MNB found one-third of households eligible for the scheme planned to buy a resale home and 9% had plans to buy or build a new home in the next 12 months. 

Of those currently eligible, 17% plan to use the grant available as part of the scheme, with almost half of those interested in the scheme planning to take out the preferential loan, which may already be reflected in the new loans during the year, the MNB said.

With regard to undertakings to have children in connection with the home purchase subsidy scheme granted in advance, interviewees said the uncertainty of employment and of their relationship with their partner as well as costs related to the would-be children pose significant risks, the MNB said.

Based on this, the risk that children noted in the application will not be born is not expected to be significant for households that plan to make use of the subsidy in the near future, the MNB added.

ADVERTISEMENT

Global GDP growth expected to be fastest in over 40 years Analysis

Global GDP growth expected to be fastest in over 40 years

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.