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Gov't Announces new Home Purchase Subsidies Scheme

Government

Photo by Fabio Balbi / Shutterstock.com

Culture and Innovation Minister János Csák announced the main elements of a new home purchase subsidy program for which city-dwellers will be eligible, at a regular press briefing on Wednesday, according to a report by state news wire MTI.

Csák said that the Home Purchase Subsidy Scheme (CSOK) for villages would remain in place, while the "Csok Plus" program would also be available to residents of settlements with populations over 5,000. 

Under the scheme, married couples will be eligible for home loans with a preferential rate of 3%, Csák said. Loan thresholds will be linked to the number of children: HUF 15 mln for a single child, HUF 30 mln for two children, and HUF 50 mln for three children, he added.

Down payments will be set at 10% of property value for the purchase of first homes and at 20pc for home expansions or purchases of larger homes to accommodate growing families.

Home values will be capped at HUF 80m for first homes and at HUF 150m for expansions or the purchase of larger homes.

Loans will runtimes between 10 and 25 years.

After the birth of the borrowers' first child, they may request a one-year grace period for repayment of the principal. After the birth of a second child and each additional child, HUF 10 mln of the principal will be forgiven.

Since Csok was launched in 2015, 233,000 families have participated in the scheme, while the program allocation has reached HUF 754 bln, Csák noted.

Fielding questions, Csák said there was "no upper limit" for the new scheme. Details of the scheme will be finalized by mid-November, he added.

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