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Government supports 5% cap on mortgages for first-time homebuyers

The mortgage cap will be available to first-time homebuyers under 35 from April 1 until October 31, 2025, conditional on purchases of homes no larger than 60sqm at a price of no more than HUF 1,200,000/sqm.

The government welcomes the Hungarian Banking Association’s position supporting a voluntary 5 percent cap on mortgage loans for young, first-time homebuyers.

The National Economy Ministry acknowledged the association’s statement, issued earlier on Monday, offering the mortgage cap to first-time homebuyers under 35 from April 1 until October 31, 2025, conditional on purchases of homes no larger than 60sqm at a price of no more than HUF 1,200,000/sqm.

To support the supply side on the home market, the ministry said the government would launch a new home development capital program under which local property funds could get up to HUF 30bn of state support as long as the state’s share of the funds doesn’t exceed 70 percent.

The funds may be channelled to the construction of new homes, rental homes or student dormitories. The ministry said that over HUF 100bn is expected to flow into the property market as a result.

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