Hungarian gov't introduces further easing measures to the Home Start programme
The government has released a new draft decree for public consultation until 29 October, outlining several modifications to both the Home Start Programme and CSOK Plus scheme.
Key changes to the Home Start Programme include allowing the purchase of partial property ownership in specific cases, such as when the applicant buys out co-owners in jointly owned properties or inherits a share and wishes to acquire the remaining portion. The programme will also make
special allowances for municipal rental housing, exempting these properties from the standard requirement that the purchase price cannot exceed the market value by more than 20%.
Another significant change is that
siblings can now be included as co-borrowers in the loan agreement, similar to spouses and parents.
However, like parents, siblings cannot acquire ownership rights in the property purchased with Home Start funding, and they cannot apply for their own Home Start loan if they have already served as a co-borrower.
The CSOK Plus scheme is also being modified to better align with real-life situations. The definition of first-time homeowners is being revised to include couples who have not previously jointly owned a property in Hungary. Additionally, banks will now be able to accept preliminary property valuations during the loan assessment process.
These changes follow previously announced modifications that are still pending implementation, including allowances for temporary dual property ownership, revised requirements for usufruct rights, and expanded eligibility for EU institution employees working in the EEA area. The programme will also become more accessible for those receiving home care allowances or nursing care benefits, and for persons with reduced work capacity.
The amendments also remove the January 2022 restriction on construction projects, allowing the subsidised loan to be used for completing previously started constructions. Furthermore, construction loans can now be disbursed before reaching certain completion stages if adequate additional collateral is provided, though the first instalment cannot exceed 30% of the total loan amount.
Cover photo (for illustration purposes only): Getty Images
