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Govʼt announces scheme for easing mortgage burden

History

Hungaryʼs government will pay off HUF 1 million of familiesʼ mortgages for every third and subsequent child they have from January 1, 2018. Families who have already taken out a mortgage and those who will do so in future will both be eligible for the benefit, national news agency MTI reports.

Details were made public today by Katalin Novák, state secretary at the Ministry of Human Capacities, after a government decision Prime Minister Viktor Orbán announced in May. The benefit will be available to families where the third or any subsequent child is born after January 1, 2018, and can already be claimed from the 12th week of pregnancy.

There is no upper age limit for children born earlier so the mortgage debt can be reduced even if the older child has already turned 18 years old. The government plans to spend HUF 17 billion on this measure next year, Novák said.

Ágnes Hornung, state secretary at the Ministry for National Economy, added that this limit could be raised if necessary. Both housing loans and general purpose mortgage loans already taken out before the publishing of the government decree will be eligible, but only housing loans will be eligible if they are taken out after the decree has been published, she said. Borrowers have to claim the benefit from the financial institutions. The state will also pay the early repayment fee to the banks, Hornung added.

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