New Changes to the Babaváró Loan Requirements and Application Process in Budapest, Hungary

Published: December 20 2023

The Babaváró loan is a popular loan option for young married couples in Hungary. It offers a variety of benefits, including interest-free payments for the first 5 years and potential loan forgiveness based on the number of children the couple has. In this article, we will discuss the new changes to the Babaváró loan requirements and application process in Budapest, Hungary.

Starting from 2024, there have been some significant changes to the Babaváró loan requirements. The maximum loan amount has increased from 10 million forints to 11 million forints, and the monthly installment has increased from a maximum of 50,000 forints to 51,000 forints. Additionally, there is now an age requirement for the female member of the married couple, where she must be no older than 29 at the time of application. However, there is a transitional period until January 2025 where the loan can still be taken out at the age of 40 if the couple is expecting a baby and the baby has reached 12 weeks of gestation.

The benefits of the Babaváró loan are tied to the number of children the couple has. If a child is born within 5 years of the loan agreement, the payment of installments can be deferred for 3 years. If the couple plans on having two children and the second child is born (reaches 12 weeks of gestation), another 3-year deferment period can be requested, and 30% of the remaining loan balance will be forgiven. If the couple plans on having three children and the third child is on the way, the entire loan balance will be forgiven.

To be eligible for the Babaváró loan, both members of the married couple must have a registered address in Hungary, and one of them must have at least 3 years of continuous social security coverage. The requirements for social security coverage have also been updated to include the possibility of counting work performed abroad as part of the required 3-year period. The interruption of social security coverage is now allowed for a maximum of 30 days. The couple must also have a clean criminal record and no outstanding debts or negative status in the Central Credit Information System (KHR).

Meeting the legal requirements is just the starting point for obtaining a Babaváró loan. Each bank has its own criteria for assessing the creditworthiness of the couple and determining if they qualify for the loan and the loan amount. It is important to be aware that banks may have stricter requirements than those outlined by the government.

Overall, the Babaváró loan continues to be a valuable loan option for young married couples in Budapest, Hungary. The recent changes to the requirements and application process aim to address the needs of couples starting a family and provide them with financial support.

What is the Babaváró loan in Hungary? The Babaváró loan is a popular loan option for young married couples in Hungary. It is a free-use loan that is interest-free for the first 5 years. If the couple has a child during this time, the interest-free period is extended until the end of the loan term. Depending on the number of children they plan to have, there may be options for loan repayment suspension or partial or full forgiveness of the debt related to childbearing.

What are the requirements to qualify for the Babaváró loan in Hungary? To qualify for the Babaváró loan in Hungary, both members of the married couple must be at least 18 years old. There is an age limit for the female partner, which starting from 2024 is a maximum age of 29 at the time of application. There is a temporary easing of this requirement until January 2025, allowing women up to the age of 40 to apply for the loan if they are already pregnant and have reached the 12-week fetal age. Both members of the couple must have a registered address in Hungary and one of them must have at least 3 years of continuous social insurance coverage. The couple must also not have a criminal record or outstanding public debt.

What are the changes to the Babaváró loan requirements in Hungary starting from 2024? Starting from 2024, there are several changes to the Babaváró loan requirements in Hungary. The maximum loan amount will increase from 10 million forints to 11 million forints, and the repayment installment will increase from a maximum of 50,000 forints per month to 51,000 forints per month. The maximum loan term remains 20 years. There is also a change in the age requirements, with the female partner being allowed to be a maximum of 29 years old at the time of application. However, there is a temporary easing until January 2025, allowing women up to the age of 40 to apply if they are already pregnant and have reached the 12-week fetal age.

Who is eligible for the Babaváró loan in Hungary? The Babaváró loan is available for married couples in Hungary. Both Hungarian citizens and foreign nationals can apply as long as they have been living in Hungary for at least 3 months. The loan is specifically for couples who plan to start a family and have children.

What are the benefits of the Babaváró loan in Hungary? The Babaváró loan provides several benefits for eligible couples in Hungary. The loan is interest-free for the first 5 years, and if the couple has a child during this time, the interest-free period is extended until the end of the loan term. Depending on the number of children they plan to have, there may be options for loan repayment suspension or partial or full forgiveness of the debt related to childbearing.

What is the application process for the Babaváró loan in Hungary? To apply for the Babaváró loan in Hungary, married couples need to meet the eligibility requirements and provide the necessary documentation, such as proof of address and social insurance coverage. They will need to apply at a bank that offers the Babaváró loan and go through a creditworthiness assessment by the bank.

Can self-employed individuals apply for the Babaváró loan in Hungary? Yes, self-employed individuals in Hungary can apply for the Babaváró loan as long as they meet the eligibility requirements, including having at least 3 years of continuous social insurance coverage.

Do the birth-related benefits of the Babaváró loan apply to children born before the loan is taken out? No, the birth-related benefits of the Babaváró loan only apply to children born after the loan contract is signed.

Can the Babaváró loan be used for any purpose? Yes, the Babaváró loan is a free-use loan, meaning it can be used for any purpose the couple desires.

Are there any age restrictions for the Babaváró loan in Hungary? Yes, there are age restrictions for the Babaváró loan in Hungary. Both members of the married couple must be at least 18 years old, and starting from 2024, the female partner must be a maximum of 29 years old at the time of application. However, there is a temporary easing until January 2025, allowing women up to the age of 40 to apply if they are already pregnant and have reached the 12-week fetal age.