The CSOK Plusz may strengthen the family model with two children in Hungary

Published: November 16 2023

The CSOK Plusz is a new housing support program in Hungary that aims to strengthen the family model with two children. It is set to launch in 2024 and has garnered significant interest from childless couples who are planning on having two children.

The current home creation support system is being revamped due to its inefficiency in promoting childbearing. The number of CSOK support applications and the total amount of funding granted has significantly decreased in the first half of 2023 compared to the previous year. This has prompted the government to introduce the CSOK Plusz as a replacement.

The CSOK Plusz is a subsidized loan with a maximum interest rate of 3%. The maximum loan amount depends on the number of children the applicants plan to have, ranging from 15 to 50 million Hungarian forints. Additionally, there is a debt forgiveness component starting from the second child, where 10 million forints are deducted from the outstanding debt for each child.

Under the CSOK Plusz, homebuyers are exempt from paying property transfer tax up to 80 million forints, which is typically 4% of the purchase price. For new-build apartments, buyers can also reclaim the 5% value-added tax, and for construction projects, they can be exempt from paying up to 5 million forints of the 27% sales tax.

One significant difference between the current CSOK and the CSOK Plusz is that the latter requires the commitment to have children. This significantly narrows down the pool of eligible applicants. According to an analysis by the Kopp Mária Institute for Population and Family Policy, in 2020, only 36.7% of CSOK applicants requested support for planned children, while 22.4% requested it for one child, 13.6% for two children, and 0.7% for three children. Furthermore, only 9.4% of CSOK applicants in 2020 were childless, indicating the intention to have a baby.

Based on user data from the Bankmonitor CSOK Plusz eligibility calculator, the majority of applicants who are planning to utilize the new support program prefer to have one or two children. Among the more than 16,000 users, 45.4% are childless, 31.9% plan to have one child, and 16.5% plan to have two children. Only 4.66% of users are considering having one or more children in addition to their existing three children.

Overall, the kalkulátor users predominantly consider a two-children family model. 52% of childless users, 57% of single-child users, and 65% of two-child users indicated their intention to have one more child.

The introduction of the CSOK Plusz housing support program in Hungary aims to encourage the family model with two children. The program offers subsidized loans, debt forgiveness, and various financial benefits to eligible applicants. It has generated significant interest from childless couples who are planning to have two children.

What is CSOK Plusz? CSOK Plusz is a housing support program in Hungary that will be launched in 2024. It is a subsidized loan with a fixed interest rate of up to 3%. The maximum loan amount depends on the number of children a person plans to have, ranging from 15 million to 50 million forints.

Who is eligible for CSOK Plusz? To be eligible for CSOK Plusz, individuals must have at least one child and plan to have more children in the future. The specific requirements and eligibility criteria will be determined by the government.

How does CSOK Plusz differ from the current CSOK program? The main difference between CSOK Plusz and the current CSOK program is that CSOK Plusz is focused on supporting families who plan to have children, whereas the current CSOK program is available for both existing and planned children. This means that the number of eligible applicants for CSOK Plusz may be smaller than for the current CSOK program.

What financial benefits are offered by CSOK Plusz? CSOK Plusz offers several financial benefits for homebuyers. Firstly, there is a loan forgiveness component, where the outstanding loan amount decreases by 10 million forints with each additional child from the second child onwards. Additionally, homebuyers using CSOK Plusz can be exempt from paying property transfer tax up to a value of 80 million forints. For newly built properties, buyers can claim a refund of the 5% VAT (value-added tax), and for construction projects, the 27% VAT can be refunded up to a limit of 5 million forints.

What is the most popular family model among those interested in CSOK Plusz? According to data from users of the Bankmonitor CSOK Plusz calculator, the most popular family model among those interested in CSOK Plusz is a two-child family. Approximately 52% of users who used the calculator indicated that they would consider having two children, while 25% would consider having one child, and only 22% would consider having three children.

What are the statistics of current CSOK usage? According to an analysis by the Kopp Mária Institute for Population and Family Policies, in 2020, only 36.7% of CSOK applicants requested the support for planned children, while 22.4% requested it for one child, 13.6% for two children, and 0.7% for three children. Additionally, in 2020, only 9.4% of CSOK applicants were childless, while 27.6% had one child, 36.3% had two children, and 33.5% had three children.

Who are the main users of CSOK Plusz? Based on data from users of the Bankmonitor CSOK Plusz calculator, almost half (45.4%) of the users interested in CSOK Plusz are childless. Among the users who have children, the majority (43.3%) plan to have one child, followed by 33.6% who plan to have two children, and 14.1% who plan to have three children.

What was the reason for the transformation of the current housing support system in Hungary? The main reason for the transformation of the current housing support system in Hungary is that it was deemed ineffective in promoting childbirth and supporting families. The number of CSOK support applications and the amount of funds disbursed under the program significantly decreased in the first half of 2023 compared to the previous year.

When will CSOK Plusz be launched? CSOK Plusz is set to be launched in 2024, replacing the current CSOK program. The specific date will be announced by the government.