One of the leading banks in Hungary, K&H, has disbursed more than HUF 225 billion in baby-expecting loans over the past three and a half years.Continue reading
This year could be the year of renovations in the real estate market due to soaring energy costs, but in many cases financial assistance will be essential to pay for the rising costs of construction and materials, real estate agency Duna House said in its latest analysis. They pointed out that at the end of the year, the government extended the deadline for almost all non-refundable subsidies and discounted loan schemes for another two years, which could be a big help for Hungarians.
The pace in the 2023 real estate market will be dictated by buyers, for whom the energy features of properties have become increasingly important over the past year, due to the energy crisis and rising utility costs. Although the popular home renovation loan is longer available, there are other alternatives.
Krisztián Fülöp, Head of Credipass Financial Intermediary in Hungary, said that the most obvious choice for families planning to have a child is the baby-expecting loan, which will remain available until the end of 2024. The biggest advantage of the interest-free loan of up to HUF 10 million (EUR 25,600) is that it can be used for anything.
Also popular among Hungarian families is the family housing support (CSOK) and the rural family housing support (falusi CSOK), which includes non-refundable support, and in the case of two children, a fixed three percent interest, subsidized loan can be taken out as well, which means an extra HUF 10-15 million (EUR 25,600-38,400), the expert stressed. This family support can only be used for buying homes.
However, not everyone qualifies for family allowances, but they should not be discouraged either. Single people or couples not planning to have children can choose from market loans: a personal loan is available at just over 10 percent interest for a loan amount of HUF 6 million (EUR 15,300), while the best mortgage-backed renovation loan has an interest rate of just over eight percent.
Meanwhile, the fall in property prices that many have been waiting for has begun on the real estate market. The price of resale brick apartments and panels in Budapest fell at the end of last year, according to the data of Otthon Centrum, a real estate agency. The price of resale brick apartments in the capital decreased by 3.5%, while the price of panels decreased by 2.5% in the fourth quarter of last year compared to the previous three months.
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