Published: December 04 2023
If you are planning to apply for the Babaváró loan in Budapest, you need to act fast. The OTP Bank is accepting applications with the 2023 conditions until December 20th. After this date, or if the contract is not concluded by December 31st, you will have to adhere to the stricter conditions for 2024.
Changes in Babaváró loan eligibility from 2024
Starting from 2024, there are two significant changes in the eligibility criteria for the Babaváró loan. First, the maximum loan amount will increase from 10 million to 11 million forints. Second, the maximum age limit for the applicant's spouse will decrease from the current 40 years to 29 years. This means that the number of people eligible for the loan will be significantly reduced. In 2022, 60% of couples applying for the Babaváró loan had a wife over the age of 30, and in Budapest, this percentage was 70%. However, there is one exception - if the wife is pregnant at the time of application, the current upper age limit will still apply in 2024, meaning she cannot be older than 40.
Deadline for applying with the 2023 conditions
To qualify for the Babaváró loan under the current conditions, you must conclude the loan agreement with your chosen bank by December 31st. While most banks, such as CIB Bank, Gránit Bank, Raiffeisen Bank, and UniCredit Bank, have not set a specific deadline for applying with the 2023 conditions, the OTP Bank requires applications to be submitted by December 20th.
Important considerations when applying
Regardless of the chosen bank, there are two important things to keep in mind:
- Due to administrative closure, TB certificates required for the application cannot be obtained between December 27th, 2023, and January 1st, 2024.
- Although theoretically, the contract can be concluded until December 31st, in practice, the last working day, December 29th, is the latest day for finalizing the contract.
Babaváró loan calculator
If you are unsure about the loan amount or monthly repayment, you can use a Babaváró loan calculator to estimate your options. These calculators can be found on the websites of various banks and will help you make an informed decision before applying.
Questions & Answers
What is the Babaváró loan? The Babaváró loan is a type of loan available in Hungary that provides financial support to young couples who are planning to have children or expand their families.
What are the eligibility criteria for the Babaváró loan? To be eligible for the Babaváró loan, the couple must be married or in a registered partnership, and at least one of the applicants must be a Hungarian citizen. Both applicants must be between the ages of 18 and 40, and they must not have any other outstanding housing loans or own any other properties.
What are the changes in the Babaváró loan requirements from 2024? Starting from 2024, there will be two significant changes in the Babaváró loan requirements. First, the maximum loan amount that can be borrowed will increase from 10 million forints to 11 million forints. Second, the maximum age limit for the wife will decrease from the current 40 years old to 29 years old. This means that the eligibility criteria will become stricter, as fewer couples will qualify for the loan support.
Will there be any exceptions for couples expecting a child in 2024? Yes, if the wife is already pregnant at the time of application, then the current upper age limit for the wife will still be valid in 2024. This means that she will not be disqualified from the loan support if she turns 41 years old during the loan term.
What is the deadline for applying for the Babaváró loan with the 2023 conditions? The OTP Bank, one of the banks offering the Babaváró loan, will accept loan applications with the 2023 conditions until December 20. If the application is submitted after December 20 or the loan agreement is not signed by December 31, then the loan will be subject to the stricter conditions that will be introduced in 2024.
Are there specific deadlines for signing the loan agreement with other banks? Most banks, such as CIB Bank, Gránit Bank, Raiffeisen Bank, and UniCredit Bank, have not set a specific deadline for signing the loan agreement with the 2023 conditions. However, with the OTP Bank, the application must be submitted by December 20 to be eligible for the 2023 conditions.
What should I be aware of when applying for the Babaváró loan? There are two important things to consider when applying for the Babaváró loan. First, due to administrative closures, it will not be possible to obtain the necessary social security certificates between December 27, 2023, and January 1, 2024. Second, although the deadline for signing the loan agreement is theoretically December 31, 2023, it is advised to complete the process by December 29, the last working day of the year.
Is there a loan calculator available for the Babaváró loan? Yes, there is a Babaváró loan calculator that can help couples estimate the amount they can borrow and the monthly repayment amounts based on their financial situation.
