The aim of the Otthon Start loan programme is to support the acquisition of a first home.
An immediate question arises: who qualifies as a first-time home buyer? I will address this in the next part of this article series.

The essence of the subsidy is that the annual interest rate payable by the borrower may not exceed 3% on the loan amount. The State pays the remaining interest exceeding this rate directly to the lending institution in the form of an interest subsidy.

It is extremely important that the 3% interest rate is fixed for the entire loan term, meaning the same monthly instalment is payable until the end of the repayment period. This is what truly makes the scheme attractive.

The interest rate of the Otthon Start loan is significantly lower than market-based housing loans. Currently, the average interest rate of housing loans fixed for at least 10 years is around 7.10%. A fixed rate maintained for a full 25-year term is even higher. It is therefore no surprise that there is considerable interest in this new subsidised housing loan. It offers a stable and predictable solution, with a monthly instalment comparable to what many people currently pay in rent.

In the case of the maximum loan amount and the longest term — that is, HUF 50 million over 25 years — the expected monthly instalment is approximately HUF 237,000.

A similarly fixed 3% interest rate is available under the CSOK Plus subsidised loan scheme. However, unlike CSOK Plus, the Otthon Start programme does not require marriage or childbearing, and the purchased property may also be rented out.

Key Information in 10 Points:

• Available for persons qualifying as first-time home buyers, for the purchase or construction of a residential property
• Maximum loan amount: HUF 50 million
• Maximum loan term: 25 years
• Fixed 3% interest rate for the entire term
• Minimum 10% own contribution (down payment)
• The price per square metre may not exceed gross HUF 1.5 million
• Maximum property value: HUF 100 million (apartment), HUF 150 million (single-family house)
• The property may not be encumbered by co-ownership shares or usufruct rights
• The seller may not be a close relative or partner
• The loan may be combined with CSOK Plus, public service housing support, or other loans

In the next part of this article series, I will explain who is eligible to apply for the Otthon Start interest-subsidised housing loan.