Published: December 21 2023
Starting in 2024, there will be significant changes to the homebuying support system in Budapest. These changes will impact the amount of support available and the eligibility requirements. In this article, we will provide an overview of the key changes that will take effect in 2024.
Changes to Homebuying Support
- The "városi CSOK" support will be discontinued in 2024 and will be replaced by the "CSOK Plusz" discounted loan program in certain municipalities.
- The "falusi CSOK" support will remain available in municipalities with a population of less than 5,000, with increased amounts and the ability to combine it with the new CSOK Plusz loan program.
- The maximum age for eligible applicants for the "Babaváró" support will decrease to 29, limiting the number of eligible individuals. However, the maximum loan amount will increase to 11 million forints.
CSOK Plusz Loan Program
- The CSOK Plusz loan program offers a state-subsidized loan with a maximum interest rate of 3% for couples planning to have a child.
- To be eligible for the loan, at least one child must be planned, and the wife must be under the age of 41.
- The loan amount depends on the number of existing and planned children, with a maximum of 50 million forints for couples with three children.
- The loan can be used for the purchase of new or existing properties, as well as home expansion and construction, but not for land purchases.
- The maximum property value for the loan is capped at 80 million forints for first-time buyers and 150 million forints for others.
- The CSOK Plusz loan offers the advantage of exemption from taxes up to 80 million forints.
Changes to Falusi CSOK
- The falusi CSOK support will see significant increases in its amount, with 1 million forints for one child, 4 million forints for two children, and 15 million forints for three children.
- The falusi CSOK can be used for the purchase of new homes, as well as the renovation and expansion of existing properties.
- Existing properties can also be renovated and expanded, but the amount of support is halved as no funds need to be spent on purchasing a property.
- The falusi CSOK is the only support program that does not require planned children, making it available to individuals with existing children or unmarried couples.
Combination of CSOK Plusz and Falusi CSOK
- The CSOK Plusz and falusi CSOK programs can be combined for young couples planning to have children.
- Individuals applying for falusi CSOK without planned children can also qualify for a CSOK loan with a maximum interest rate of 3%.
By understanding these changes to the homebuying support system in Budapest, potential homebuyers can make informed decisions about their housing options and financial support available to them.
Questions & Answers
What changes are happening to homebuying support in Budapest starting in 2024? Starting in 2024, there will be significant changes to the homebuying support system in Budapest. The most important change is the discontinuation of the urban CSOK support, which will be replaced by the discounted CSOK Plus credit program in certain locations. The rural CSOK will continue to be available in small towns with an increased amount, which can be combined with the new CSOK Plus loan program. There will also be changes to the Babaváró support program.
What is the CSOK Plus loan program? The CSOK Plus loan program is a state-supported loan that offers a favorable interest rate for couples who are planning to have children. The interest rate is capped at a maximum of 3% if the loan is repaid according to the terms of the contract. The loan amount depends on the number of existing and planned children, with up to 50 million forints available for couples with three children. The CSOK Plus loan can be used for purchasing new or existing properties, expanding existing properties, or building a family house. However, it cannot be used for purchasing land. There are also maximum property values set by the legislation: 80 million forints for first-time buyers and 150 million forints for others.
What are the eligibility criteria for the CSOK Plus loan program? To be eligible for the CSOK Plus loan program, couples must have at least one child and the wife must be under 41 years old. If the wife is already pregnant, she can be 41 years old or older until the end of 2025. The program is exclusively for married couples.
What are the changes to the Babaváró support program? The Babaváró support program will see changes in the maximum age of eligibility. The maximum age for wives to apply for the support will be reduced to 29 years, limiting the number of eligible individuals. However, the maximum loan amount will be increased to 11 million forints.
What is the rural CSOK? The rural CSOK is a non-refundable support provided by the Hungarian Government that can be accessed in small towns with fewer than 5,000 residents. Starting in 2024, the amount of the rural CSOK will increase significantly. With this support, couples with one child can receive 1 million forints, while those with two or three children can receive 4 million and 15 million forints, respectively. The rural CSOK can be used for purchasing a new family house, purchasing a used residential property, or building a family house. If an existing property is being renovated or expanded, the amount of support is halved since there is no need to spend money on purchasing.
Can the rural CSOK and the CSOK Plus be combined? Yes, the rural CSOK and the CSOK Plus can be combined. However, this option is only available for young married couples who are planning to have children.
Who is eligible for the rural CSOK? Unlike the CSOK Plus, the rural CSOK does not require having children. Anyone can apply for the support, including unmarried couples and single parents who are raising a child. However, only married couples can apply for the support if they have planned children.
Are there any loans available for those applying for the rural CSOK without children? Yes, individuals applying for the rural CSOK without children can still access loans. They can apply for a CSOK loan with a maximum interest rate of 3% if the loan is repaid according to the contract. The maximum loan amount is 10 million forints for couples with two children and 15 million forints for couples with three children.
What are the benefits of the CSOK Plus and the rural CSOK? One of the benefits of the CSOK Plus is the exemption of real estate tax up to 80 million forints for those who purchase a property. The rural CSOK is advantageous because it does not require having children, allowing individuals with existing children to apply.