Published: December 05 2023
The CSOK Plus loan is a government-supported loan in Hungary that can be applied for when having a child. There are specific requirements that the property must meet in order to be eligible for the loan.
Purpose of CSOK Plus
The CSOK Plus loan can be used for the payment of the purchase price of a new property, as well as for construction or expansion costs that are accepted by the lending institution. It is important to note that for construction or expansion, the bank must approve the budget for the work in advance.
Determining the Relevant Government Office
The government office responsible for housing-related state subsidies depends on the location of the property. For properties located in Pest County or Budapest, the Budapest Capital Government Office handles the tasks related to housing subsidies.
Definition of a First Common Home
An eligible property for CSOK Plus is considered a first common home if, at the time of submitting the loan application for building or purchasing the property, the spouses did not jointly own a property in the same location in Hungary and make a declaration to that effect. In this case, a minimum down payment of 10% may be sufficient instead of the usual 20%, but the purchase price of such a property cannot exceed 80 million Hungarian Forints.
Minimum Useful Area of the Property
The minimum useful area of the property is determined by the number of children the applicants have. For a property to be eligible for the CSOK Plus loan, it must meet the following minimum useful area requirements:
- One child: 40 square meters
- Two children: 50 square meters
- Three or more children: 60 square meters
For a house (single-family residential building), the minimum useful area requirements are:
- One child: 70 square meters
- Two children: 80 square meters
- Three or more children: 90 square meters
If applicants are seeking a loan for the expansion or construction of a property, it must meet the minimum useful area requirements no later than upon completion of the work.
Definition of a Property for CSOK Plus
For the purposes of CSOK Plus, an eligible property is a registered dwelling house or apartment in the land registry that meets the criteria for habitation. The property must have:
- A living room and a kitchenette with a total area exceeding 12 square meters, or in the absence of this, an additional independent ventilated living space with an area of at least 4 square meters for cooking purposes
- Access to utility electricity services
- Individual heating method
- Sewage disposal system, or in the absence of a public sewage disposal system in the area, provisions for individual wastewater treatment and storage
- Access to utility drinking water services, or in the absence of utility drinking water services in the area, provision of drinking water through a well on the property.
Conclusion
CSOK Plus is a loan program in Hungary designed to support individuals who plan to have children. By meeting the specific requirements for the property, applicants can access this government-supported loan for housing-related purposes.
Questions & Answers
What can the CSOK Plusz loan be used for? The CSOK Plusz loan can be used for paying the purchase price of a home, as well as for construction or expansion expenses that are approved by the bank when submitting the loan application.
Which government office should I contact depending on the location of the property in Budapest, Hungary? For housing-related state support, the county government office responsible for the location of the property handles the process. For properties located in Pest County or in the territory of Budapest, the Budapest Capital Government Office is responsible.
When is a property considered as the first joint home for the purposes of CSOK Plusz in Hungary? A property is considered as the first joint home for CSOK Plusz if the spouses did not jointly own the same property in Hungary when applying or prior to applying for the loan for building or purchasing the home, and they declare this in writing. In the case of purchasing or building the first joint home, a minimum down payment of 10% may be sufficient instead of the usual 20%. However, there is a limitation that the maximum purchase price of such property should not exceed 80 million Hungarian Forint. (If the couple also applies for the Babaváró loan together with the CSOK Plusz loan, then 75% of the Babaváró loan amount will be considered as down payment by the banks.)
What is considered as useful floor area when applying for CSOK Plusz? Useful floor area is important because it determines the minimum required size of the property based on the number of children. Useful floor area includes the sum of the following room areas: entrance hall, hallway, living room, bedroom, dining room, kitchen, dining kitchen, bathroom, toilet, pantry and storage room, wardrobe, laundry room, boiler room, and other heated rooms, excluding car storage and basement space.
What are the minimum sizes for an apartment or house when applying for the CSOK Plusz loan in Hungary? The minimum useful floor area for an apartment, or a stand-alone residential building, should be:
- 40 square meters for one child,
- 50 square meters for two children,
- 60 square meters for three or more children.
For a house (single-unit residential building), the minimum useful floor area should be:
- 70 square meters for one child,
- 80 square meters for two children,
- 90 square meters for three or more children.
If the applicants apply for a loan for the expansion or construction of a house or apartment, the property should meet the floor area requirements no later than upon completion of the construction work.
What is considered as a "lakás" (apartment) for CSOK Plusz purposes? For CSOK Plusz, a "lakás" refers to a legally registered property in the real estate register that meets the living conditions, including:
- A living space with a floor area larger than 12 square meters and a cooking facility. If there is no cooking facility, an additional separate ventilated living space with a floor area of at least 4 square meters that allows for cooking should be available.
- Access to electricity service.
- Individual heating method.
- Connection to a public sewage system, or if not available, the property should have an individual sewage treatment device or a closed sewage storage system.
- Connection to a public water supply system, or if not available, the property should have a well providing drinking water quality.
What is considered as "egylakásos lakóépület" (single-unit residential building) for CSOK Plusz purposes? A "egylakásos lakóépület" refers to a stand-alone, semi-detached, or terraced residential building that includes one dwelling unit. It should have a separate roof and building structure, with direct access from ground level.
What is considered as a new home for CSOK Plusz purposes in Hungary? For CSOK Plusz, the loan amount and the support are not influenced
