Hungary is replacing its Otthon Start subsidised mortgage programme with a new scheme called Wekerle Plusz, following an announcement by the prime minister. The new programme restricts eligibility to first-time buyers aged 18 to 41, introduces a fixed 3% interest rate for new-build purchases and a fixed 5% rate for used properties, and requires a minimum five-year residency obligation. The applicant and spouse must also hold less than a 50% ownership share in any existing property. Existing Otthon Start contracts remain valid, though the exact transition date has not yet been confirmed.
For used-property buyers, the 5% rate represents an increase compared to the current programme. Market mortgage rates have been falling and now average around 6.4%, with some banks offering rates as low as 5.6%. On a 25-year loan of 40 million forints, a borrower taking a market rate of 5.6% rather than today's average could save roughly 20,000 forints per month, or around 6 million forints over the loan term. Those who no longer qualify for the subsidised scheme are therefore advised to compare offers across multiple lenders.
A second measure reintroduces state support for housing savings accounts, which was abolished in 2018. Savers will receive a 10% state top-up for a five-year term or 20% for longer terms, below the previous 30% rate but the first meaningful incentive for housing-purpose saving in years. The scheme is aimed at those planning to buy or renovate within five to ten years, or saving on behalf of children, with precise terms to follow once detailed rules are published.
The third element is an expansion of the energy-efficiency renovation programme, now available across all settlements and without child or marital-status requirements. The loan ceiling rises from 6 million to 15 million forints at a fixed 3% rate, accompanied by a state grant of 30 to 50%, up to a maximum of 7.5 million forints, conditional on achieving at least a 30% improvement in energy performance. The programme targets around 20,000 properties per year.
"The used-property market will be most affected in segments where Otthon Start was used most heavily, such as smaller flats in Budapest's inner districts and panel apartments. In the 13th district, 41% of properties sold this year fell within the programme's price cap, compared with only 14% in the 2nd district. The market was already slowing before this announcement, with longer sales periods and more negotiation. This change will reinforce that trend, so sellers of used properties will need to price more realistically. New-build properties continue to benefit from the 3% rate and the reduced VAT rate, while the renovation programme should boost demand for older family houses in poor condition," said Péter Szegő, senior analyst at Duna House.
The three measures together are expected to shift demand towards new-build properties, increase the role of market-rate lending, and stimulate a wave of renovation activity. Analysts estimate that the volume of subsidised lending for used properties could roughly halve once the new rules take effect, while bank competition for non-qualifying borrowers may push market rates lower still. Detailed regulations have not yet been published, and the timing of the transition from Otthon Start to Wekerle Plusz remains to be confirmed.
