Published: November 24 2023
A new mortgage support program called "CSOK Plus" has been revealed in Hungary. This program offers a subsidized loan for couples who have children, starting from January 1, 2024. The program includes attractive features such as high loan amounts, low interest rates, and debt forgiveness. In this article, we will provide all the key details and requirements of the CSOK Plus program.
CSOK Plus Basic Features
The CSOK Plus program allows the subsidized loan to be used for various purposes, including home purchase, construction, and expansion of an existing property. The loan can be applied for both new and used properties. However, it cannot be used for renovation or modernization purposes.
The loan amount depends on the number of children in the family. For example, if a couple without children decides to have one child, they can qualify for a loan of up to 15 million forints. The maximum loan amount of 50 million forints can be obtained by couples who have three or more children. The loan repayment period ranges from 10 to 25 years, with interest-only payments in the first year.
Additionally, there are several benefits associated with the CSOK Plus program. Borrowers are eligible for a 3% interest rate, and the repayment obligation can be suspended for one year upon the birth of the first child. Furthermore, for every child born during the loan repayment period, 10 million forints of the outstanding debt will be forgiven.
Eligibility for CSOK Plus
The CSOK Plus program is exclusively available to married couples, and not to individuals or cohabiting partners. The female member of the couple must be under 41 years of age at the time of application. However, there is an exception until the end of December 2025, allowing couples to qualify for the loan even if the female member is older, but she must be pregnant and the fetus must be at least 12 weeks old.
To qualify for the program, the couple must commit to having at least one child. Both members of the couple must have a clean criminal record, and neither can have outstanding public debts exceeding 5,000 forints. At least one member of the couple must have a continuous social security coverage of at least 2 years. The couple must also meet the credit assessment criteria of the lending institution.
Questions & Answers
What is CSOK Plusz? CSOK Plusz is a new housing support program in Hungary that provides subsidized loans for couples with children.
When will CSOK Plusz be available? CSOK Plusz will be available starting from January 1, 2024.
Who can benefit from CSOK Plusz? Only married couples are eligible for the subsidized loan. Singles and unmarried couples cannot apply for the loan.
Is there an age limit for the woman in the married couple? Yes, the woman in the married couple must be under 41 years old at the time of application. However, there is an exception until the end of December 2025. If the woman is older, she can still apply if she is pregnant and the fetus is at least 12 weeks old.
How much can I borrow under CSOK Plusz? The loan amount depends on the number of children the couple has or plans to have. For example, if a childless couple has one baby, they can borrow up to 15 million forints. If they have two babies, they can borrow up to 30 million forints. And if they have three or more babies, they can borrow up to 50 million forints.
What can the loan be used for? The subsidized loan can be used for purchasing a home, building a new home, expanding an existing property, or expanding a home purchase. However, renovation or modernization is not included in the eligible purposes.
What is the interest rate for CSOK Plusz? The interest rate for the loan is 3%.
What are the repayment terms for CSOK Plusz? The loan has a repayment term between 10 and 25 years. In the first year, borrowers only have to pay the interest, and the principal repayment starts from the second year.
Are there any additional benefits with CSOK Plusz? Yes, there are additional benefits. The loan comes with interest support, where borrowers only have to pay a 3% interest rate. Additionally, when the first baby is born during the loan term, the repayment obligation can be suspended for one year. Furthermore, for each subsequent baby born during the loan term, 10 million forints of the outstanding debt will be forgiven.
What are the requirements for CSOK Plusz? The requirements for CSOK Plusz include:
- Being a married couple
- The woman in the couple must be under 41 years old (with the exception until December 2025 for those who are older but pregnant)
- Committing to have at least one child
- Both spouses must have a clean criminal record
- Neither spouse can have outstanding public debts exceeding 5,000 forints
- At least one of the spouses must have a minimum of 2 years of continuous social security coverage
- Meeting the evaluation criteria of the bank for the loan
What counts as the required social security coverage? The following situations count as fulfilling the requirement of having at least 2 years of continuous social security coverage:
- Social security coverage according to the Social Security Act
- Being a full-time student in a domestic or foreign higher education institution
- Engaging in supplementary activities according to the Social Security Act
- Short breaks or suspensions of the social security coverage for up to 30 days do not affect the continuous coverage requirement. Similarly, suspending the coverage does not count towards the 2-year requirement.
