Published: November 24 2023
The Hungarian government has released the details for the CSOK Plus home loan program, which will be available starting from January. These new regulations are similar to the current CSOK program, with some additional features and criteria. In this blog post, we will explore the key points of the CSOK Plus home loan program in Budapest, Hungary.
Eligibility and Conditions
The CSOK Plus program allows individuals to apply for a maximum of 50 million HUF in subsidized home loans. Only married couples are eligible for this program, and they must plan to have children. The wife must be under 40 years old, and the loan can be used for both new and used properties. The program also has certain requirements regarding employment history and financial status.
Loan Usage and Limits
The CSOK Plus loan can be used for the purchase, construction, expansion, or renovation of residential properties in Hungary. The maximum amount of the loan depends on the number of children the couple plans to have. For one child, the loan limit is 15 million HUF, for two children it's 30 million HUF, and for three or more children, it's 50 million HUF.
Repayment and Terms
The repayment period for the CSOK Plus loan is between 10 and 25 years. The interest rate is fixed at 3% and the loan can only be taken out once by the married couple. Ownership of the property can only be acquired by the couple applying for the loan. There are certain restrictions and conditions regarding previous government subsidies and loan repayments.
The property purchased or renovated using the CSOK Plus loan must meet certain criteria. The property must have at least one living room with an area of at least 12 square meters, a separate kitchen, and a bathroom. The net floor area of the property must also be adjusted according to the number of children planned by the couple. For example, for one child, the minimum net floor area should be 40 square meters.
The CSOK Plus home loan program in Budapest, Hungary offers valuable opportunities for married couples looking to purchase or renovate residential properties. With its favorable interest rates and flexible repayment terms, this program aims to support families in their housing needs while stimulating the local real estate market.
Questions & Answers
What is CSOK Plusz? CSOK Plusz is a home loan program in Hungary that provides financial support for the construction, purchase, expansion, or improvement of residential properties.
Who is eligible for CSOK Plusz? CSOK Plusz can only be accessed by married couples who plan to have children. Unmarried couples or single parents are not eligible. The wife must be no older than 40 years, and the loan can be used for both new and used properties. The eligibility criteria also state that childless couples can apply for CSOK Plusz with a commitment to have at least one child.
What are the financial benefits of CSOK Plusz? With CSOK Plusz, borrowers can receive a maximum of 50 million Hungarian Forints (HUF) in subsidized mortgage loans. The loan comes with a fixed interest rate of 3%, and borrowers have the option to suspend loan repayments. The amount of financial support varies based on the number of children: up to 15 million HUF for one child, 30 million HUF for two children, and a maximum of 50 million HUF for three or more children.
What are the property requirements for CSOK Plusz? The property must be located in Hungary, and it can be a residential apartment or a single-family house. The property must have at least one living room with an area exceeding 12 square meters, a separate cooking area, and a bathroom. The net floor area of the property should be adjusted according to the number of planned children: 40 square meters for one child, 50 square meters for two children, and 60 square meters for three or more children. For single-family houses, an additional 30 square meters must be added to these minimum area requirements.
What are the personal requirements for CSOK Plusz? Applicants must have a minimum of 2 years of social security coverage, regardless of the requested loan amount. They must also have a clean criminal record and no outstanding debts exceeding 5,000 HUF. Those who have received non-repayable government support in the past can still apply for CSOK Plusz if the previous conditions for childbearing have been met or if the support amount has been reimbursed.
What is the repayment period for CSOK Plusz? The repayment period for CSOK Plusz loans is a minimum of 10 years and a maximum of 25 years. The specific repayment terms will be determined by the bank handling the loan application.
Is it possible to combine CSOK Plusz with other government-funded housing loans? No, borrowers who have already taken advantage of other government-funded housing loans such as CSOK or rural CSOK are not eligible for CSOK Plusz unless they fully repay the previous loan with its interest and switch to market-based repayment for the outstanding balance.
Is the CSOK Plusz program available for everyone in Hungary? No, the CSOK Plusz program is exclusively available to long-term residents of Hungary, including both Hungarian citizens and foreign nationals.