Home loan and social housing subsidies

The Hungarian government has decided to re-launch forint-denominated state-subsidised home loans that will be available for the purchase of both new or used homes, Prime Minister Viktor Orbán and Economy Minister György Matolcsy announced announced at a joint press conference on Wednesday.

The loan will be available for new flats that cost no more than HUF 30 million, while the ceiling in the case of used flats will be at HUF 15 million. The prime minister looks at the program as one of the most important elements of the Home Creation Program.

There will also be housing subsidy on social grounds, available only for those families where at least one of the adult members have a job and only if they have no public debt. When granting the subsidy, authorities will take into consideration the number of children in the family, the size of the flat and its energy efficiency qualification.

Economy Minister György Matolcsy added that both the social housing subsidy and the interest rate-subsidised loan are incorporated into the 2012 budget. The minister did not disclose specific numbers about the interest rate-subsidised loans, but estimated that the current interest rates could go down by about a third as a result of the measure.

(source: portfolio.hu)