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WHAT is an interest-subsidized home loan available for? (2012 status)

  • purchase price of a new apartment,
  • building a new apartment,
  • used to modernize the apartment

Contrary to various rumors, there is currently no publicly supported home loan available:

  • used to buy a used apartment, house, real estate
  • apartment, house extension

Legislation, effective HFSA information here.

Apply for an interest-subsidized home loan for the above properties?

Childless person under 35 or a parent (s):

  • if you are unique,
  • or if they are married, in a registered partnership or in a partner
    ( Age 35 refers to both, taken together)

Person (s) under 45 years old with at least two children :

  • if you are unique,
  • or if they are married, in a registered partnership or in a partner
    ( Age 35 refers to both, taken together)

The age assessment is based on the date the loan application was submitted.

General characteristics of the term of publicly supported home loans

General characteristics of the term of publicly supported home loans

Credit Term:
up to 30-35 years (may vary by bank)
Duration of interest rate subsidy:
up to 20 years
Credit grace period:
12-36 months (may vary by bank)

Maximum amount of supported home loans depending on the municipality:

In case of construction, purchase:

  • In Budapest and in county towns up to HUF 12.5 million,
  • In other settlements up to HUF 10 million.

In case of modernization:

  • Up to $ 5 million , anywhere in the country

The loan for modernization, purchase, modernization shall not exceed the construction costs (purchase price) and modernization costs proportional to the joint ownership of the claimant, their spouse, partner, registered partner and dependent children and family members. Considering the above, it is determined on the basis of the market value of the property offered as collateral.

Maximum purchase price or construction cost (excluding land plot)

  • HUF 25 million in Budapest and in county towns
  • In other settlements HUF 20 million
  • Upgrade cost is not maximized!

When should I apply for a home loan and when do I need a construction loan?

  • in the case of purchase, within 120 days of the conclusion of the final contract of sale,
  • in the case of construction, before the final permit for use is issued,
  • in case of modernization it is possible to apply for a state interest subsidy home loan before the realization of the loan objective

Rate of interest subsidy

For multi-child supporters:
When building or buying a new home, the government subsidy rate increases (depending on the number of dependent children):

 

In case of home modernization, 40% of the government paper or reference yield.

Author

blog@i-krakow.com