Hungary is withdrawing its Otthon Start subsidised mortgage programme, with two firm deadlines for prospective borrowers. A government decree has confirmed that the Wekerle Plusz scheme is now active, while Otthon Start is being phased out on a shorter timeline than many had anticipated.
Borrowers wishing to purchase a property under Otthon Start must have a signed purchase agreement in place by 31 October, or, in the case of new construction, must have initiated the permitting process by that date. The loan application must then be submitted to a bank by 15 November. Both are absolute deadlines, and missing either means losing access to the programme.
Several practical risks could derail a last-minute application. A pre-qualification does not replace a formal loan application, and a signed purchase agreement is required rather than a preliminary contract or deposit receipt. Applicants should clarify this with their bank in writing. The 15 November deadline falls on a Sunday, making it inadvisable to leave submission to the final day. A single missing document can extend the process by weeks, and a property valuation that comes in below the purchase price could require additional equity at short notice.
For those who miss the Otthon Start window but otherwise meet the eligibility criteria, the Wekerle Plusz programme offers an alternative. The scheme provides a subsidised loan of up to 50 million forints over 25 years to buyers aged 18 to 45. The interest rate is capped at 3% for new properties and 5% for existing ones. The programme is restricted to first-time buyers, requires five years of owner-occupation and prohibits rental of the property.
For buyers who qualify for neither programme, Credipass's Hungary head Fülöp Krisztián noted that market conditions may shift. "Várhatóan nagyon rövid időn belül meg fognak jelenni olyan banki ajánlatok, amelyek nagyon közel lesznek a kamattámogatott hitelek mértékéhez," he said, indicating that competitive market mortgage offers from banks are expected to emerge at rates close to those of the subsidised loans as the pool of eligible borrowers narrows.
