Hungary Launches 3% Subsidized Loans for First-Time Buyers
Hungary Launches 3% Subsidized Loans for First-Time Buyers

Hungary Launches 3% Subsidized Loans for First-Time Buyers

News summary

Hungary's government, led by Prime Minister Viktor Orbán, has introduced a new housing subsidy program offering first-time home buyers loans with a fixed 3% interest rate for up to 25 years, capped at 50 million forints (about $147,000) and requiring a 10% down payment. The scheme is designed to support young Hungarians and families nationwide, including rural areas, and aims to address soaring property prices, which have increased by over 230% since 2010, the highest rate in the EU. Orbán highlighted that while rising home prices benefit current owners, many Hungarians still struggle to buy their first home amid a housing shortage and low new home completions. The subsidized loan rate is significantly lower than current market rates, which average between 6.5% and 8%, making this a favorable alternative for buyers. This measure is part of a broader housing strategy to halt rural migration and support families ahead of the closely contested 2026 elections, with the government also planning to launch a home renovation support program. Analysts view the program as another populist move to bolster Orbán's political standing amid a weak economy and inflationary pressures following regional instability.

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