Published: December 08 2023
of CSOK Plusz Young couples who plan to apply for a 10 million HUF babaváró hitel (baby loan) and have a female partner who is at least 30 years old need to act quickly. From next year, only couples where the female partner is younger than 30 or between 30 and 41 years old and pregnant will be eligible for the interest-free loan. Additionally, the maximum amount of babaváró támogatás (baby support) will increase to 11 million HUF. Another new program starting in 2024 is CSOK Plusz, which offers a favorable, interest-subsidized loan. To be eligible for this loan, couples are required to have at least one additional child. The maximum loan amount depends on the number of children in the family.
Considering the Pitfalls
Before deciding whether to apply for support programs based on old or new rules, it is important to consider various factors. These include the desired location, age of the couple, number of children planned or already born, and the terms and conditions of the support programs. While free money, interest-free, or low-interest loans can be attractive, it is essential to carefully read the fine print and understand the consequences if things do not go as planned.
Buying a home in Budapest is a significant milestone for young couples. By following expert advice and staying informed about the support programs and their changes, couples can make informed decisions to save money for their first home.
Questions & Answers
What is the biggest challenge for young couples in Budapest when saving money for their first home? The biggest challenge for young couples in Budapest is to gather a large amount of money for the down payment.
What are the changes in the support system for young couples in Hungary when it comes to buying a home? The Hungarian National Bank (MNB) has proposed reducing the required down payment for young people buying their first home from the current minimum of 20% to 10%. This change is expected to take effect in the first half of 2024.
What will happen to the urban home purchase subsidy (CSOK) in Hungary starting in 2024? The urban home purchase subsidy (CSOK) for existing or planned children will no longer be available starting in 2024. Couples who want to apply for this subsidy will need to submit their documents before the administrative break between the end of the year and the two holidays.
Is the rural home purchase subsidy (falusi CSOK) going to change in Hungary? Yes, there will be positive changes to the rural home purchase subsidy (falusi CSOK). Families who want to purchase, expand, or renovate a used home, or build a new home, will be able to apply for this subsidy. The maximum amount available for both home purchase and construction, as well as renovation and expansion, will increase.
What is the CSOK Plus in Hungary? The CSOK Plus is a new housing purchase support that will be introduced in 2024. It will be a discounted, interest-supported loan. To be eligible for this loan, the couple must have at least one additional child. The maximum loan amount will be determined based on the number of existing and planned children, ranging from 15 million to 50 million Hungarian forints.
What are the eligibility requirements for the CSOK Plus loan in Hungary? To be eligible for the CSOK Plus loan, there must be at least two years of continuous social security coverage, with particularly strict requirements for the 180 days preceding the application. Those who have previously applied for CSOK or a loan related to CSOK can only take out the discounted CSOK Plus loan if they have fulfilled the requirements related to childbearing or have repaid the previous support.
What should young couples in Budapest consider when deciding whether to apply for the old or new support system? There are several factors to consider, such as the location where they want to live, their age, and how many children they plan to have. It is important to carefully read the terms and conditions of the support programs and understand what happens if things do not go as planned.
