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Draft decree makes more Hungarians eligible for home loan subsidies

The government has drawn up a draft of a decree that broadens the scope of Hungarians eligible for home loan subsidies, in line with measures announced earlier as part of the state assistance program for distressed borrowers, daily Világgazdaság reported on Friday.

The draft decree makes the subsidies available to people who purchase homes on which banks have foreclosed as well as to those who are struggling to make repayments on their existing homes and want to move into smaller ones.

The interest subsidies would be linked to government securities yields, and the loans would be capped at HUF 10 million for new homes and HUF 6 million for resale homes.

Allowing more people to avail of the subsidies is unlikely to cause a big fiscal burden, the paper said. This year, some HUF 120 billion is budgeted for home loan subsidies, it added.