News spread quickly that a 10% down payment is sufficient for the Otthon Start loan. However, the situation is not that simple. Several legal regulations must be interpreted together, and banks may apply even stricter requirements.

The government decree on Otthon Start indeed mentions 10%, but it states that the loan may be granted with at least 10% own contribution. It also specifies the following exceptions:

• inclusion of additional collateral
• compliance with the debt-to-income ratio (JTM)
• compliance with the MNB regulation on loan-to-value ratios

Inclusion of Additional Collateral

In such cases, the applicant does not only offer the purchased property as security, but may also involve another property as collateral. Depending on the value of the properties, this may result in a lower required down payment — in some cases even no own contribution at all.

Debt-to-Income Ratio (JTM)

The borrower’s monthly income capacity must be examined.

Generally:

• Below HUF 600,000 net monthly income, up to 50% of income may be used for loan repayments
• From HUF 600,000 net monthly income, up to 60% may be used

All existing monthly repayments must be added together. For example, if someone already has a baby-expecting loan (Babaváró) and wishes to take out an Otthon Start loan, the combined monthly instalments may not exceed the above limits.

The JTM indicator can be improved by involving a co-debtor, such as a spouse or parent.

Change effective from 1 January 2026: The threshold will increase from HUF 600,000 to HUF 800,000 regarding the 50%/60% income burden limit.

Loan-to-Value Ratio (LTV)

An MNB regulation determines to what extent a property’s value may be financed by a loan.

The general rule is that the loan amount may not exceed 80% of the value of the property. This means that, as a starting point, the required down payment is typically 20%, not 10%.

So how can the 10% mentioned in the Otthon Start decree apply?

The MNB regulation also provides preferential cases. A property may be financed with 10% down payment if:

• the borrower (and co-debtor, if any) qualifies as a first-time home buyer (previously defined as under 41 years of age and not having owned 50% or more in a residential property, or having only owned property encumbered by statutory usufruct), or

• the purchase concerns an energy-efficient home (total energy performance not exceeding 68 kWh/m²/year and at least “A+” energy rating).

Change effective from 1 September 2025:As indicated above, first-time home buyer status will no longer be subject to an age limit.

Summary: Despite the widely mentioned 10%, in most cases 20% down payment is required. However, 10% may be sufficient in the case of first-time home buyers, energy-efficient property purchases, or with the inclusion of additional collateral.

It is advisable to consult a loan specialist regarding the exact possibilities. However, given the currently evolving regulatory environment, some uncertainty remains even among professionals. Certain aspects of the Otthon Start decree are still not entirely clear, and further amendments are expected according to recent reports.

The next part of this article series will focus specifically on the mistakes to avoid — and how to avoid them.