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Duna House: One fifth of borrowers avail of new home subsidies in December

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Around 21.5% of home buyers who took out a loan to finance the purchase also used funds available through the governmentʼs home purchase subsidy scheme for families (CSOK) at the end of December, real estate agent franchise Duna House said today based on their own data.

The subsidies were expanded in July 2015 and were expanded further from the start of 2016.

The share of borrowers using subsidies for new home purchases is up from around 10% measured in the first two months following the launch of the program.

Duna House said that 58% of those availing of the subsidies in December were from outside Budapest. Their share rose from 40% in July-August. 

Under regulations effective in the second half of 2015, Hungarians were eligible for between HUF 500,000 and HUF 3.25 million in CSOK subsidies for home purchases and expansions, depending on the number of children in their households. The CSOK subsidies replaced the “szocpol” home loan subsidies, and made the subsidies available for the purchase of resale homes or the expansion of existing homes, and for families with only one child.

Under the terms in effect since January, the government is offering a HUF 10 mln grant for the purchase of a new home for families who commit to having three children over ten years, and they can also draw on subsidized-rate loans of up to HUF 10 mln. Families with one child buying a new home can avail of a grant of HUF 600,000 and families with two children have access to a grant of HUF 2.6 mln.

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