Recent builds 

1134 Budapest, Új Palotai út 8-10	Angyal-fok	map
1149 Budapest, Várna u. 16.	Aréna Lakóház	map

LOAN INFORMATION 

Claiming financial support by married couples and families with children with the purpose of property purchasing is regulated by the Hungarian government as per below:

According to the housing regulations you are entitled to governmental support to build and purchase new properties. The following supports are available:

• property building (purchasing) discount
• tax-refund
• free access support
• loan interest discount
• complementary interest subsidy
• tax-relief

For the above eligible ones are: Hungarian citizens of the age and citizens over 16 still living in the same household as of their parents. Foreign citizens or citizens without nationality need to apply for a permission issued by the Ministry of Agriculture. For married couples, if one of the spouses is Hungarian citizen, no permission is required.
Exceptions are: if the applicant or his/her spouse, partner, under age child or any family member moving in with the applicant are property owners, hold a life tenancy agreement, or beneficiaries of a rental agreement for a council or company accommodation. By law, trading premises owned by a small business partner are regarded as personal assets.

Not excluding factors:

• if the applicant, his/her spouse, partner and under age child or any family relative moving in with the applicant have maximum 50% ownership of a property gained through inheritance or ceased joint ownership
• if they are decreed to demolish their property by the notary of the local council
• if they gained ownership of a leased property prior to 31/12/88, and the tenant is still living on the premises
• or if they inherited a leased property after 31/12/88, and the tenant is still living on the premises

Applications will be considered as per below if the number of the applicants and relations moving in with the applicant are:

• in case of 1-2 person: 1-3 rooms
• in case of 3 persons: 1,5-3,5 rooms
• in case of 4 persons: 2-4 rooms

Any additional person will entail a 0,5 room increase. An increase of 1 room/additional person will apply to families with 3 or more children. As of 01/01/01, breakdown of financial support/room exl. land value has been maximized by the Ministry of Finance as below:

1 room	10,5M HUF
1,5 rooms	12,5M HUF
2 rooms	15M HUF
2,5 rooms	17,5M HUF
3 rooms	19,5M HUF
3,5 rooms	22M HUF
4 rooms	24,5M HUF
4,5 rooms	27M HUF
5 rooms	29M HUF
5,5 rooms	31,5M HUF
6 rooms	33,5M HUF
6,5 rooms	36M HUF
7 rooms	38M HUF

According to housing regulations, in case of married childless couples, 2 unborn children, and in case of married couples with 1 child and a further unborn child are to be taken into consideration when determining the maximum value of the financial support. Furthermore, the applicants are to utilize all their financial assets towards the sale price. Here belongs any income derived from property sales 5 years prior to signing the housing support contract. In case of complementary interest subsidy loans, the above conditions are not applicable.

1. PROPERTY PURCHASING DISCOUNT

Buyer is entitled to a non-refundable governmental loan based on the number of children and family relations financially supported by buyer.
Breakdown as below:

• after first child: 800000 HUF
• after second child: 1,2M HUF
• after third child: 1,2M HUF
• after fourth child: 800000 HUF
• after any other financially supported family member: 30000 HUF

Currently childless married couples, under 40 can claim the above amounts as an advance payment, providing their first child will be born within 4 years, and the second within 8 years. Married couples with 1 child are entitled to the above mentioned non-refundable contribution, providing their second child will be born within 4 years.
Above contribution: maximum 65% of the asking price can be claimed after every child if it has not been used up before.

From the housing support point of view, all below are acknowledged as a child:

• if it is the applicant's blood or adopted child
• if it is a foster child who has been living in the same household and been financially supported by the applicant for at least a year. If foster care ceases within 3 years, loan amount will be repaid by applicant.
• if it is a child who has been living in the applicant's short or long term care for at least a year. If care agreement with the Child Protection Agency ceases within 3 years of placement and applicant will not take another child into his care, applicant will repay loan.

From housing support point of view all below acknowledged as financially supported children:

• child under 16
• child over 16 but under 25 in full time education
• over 16 mentally or physically handicapped child, whose condition is not likely to improve within a year, with 67% work capability for at least a year

Applicant is eligible for financial support following the birth of the above mentioned child.

2. TAX REFUND

Above value is maximized at 60% of VAT paid after the asking price, but no more than 400000 HUF.

3. FREE ACCESS SUPPORT

Applicant can claim non-refundable housing support to cover extra expenses incurred from creating free access to the property for a seriously handicapped person. It has been maximized at 250000 HUF. If the handicapped person is close family relative, this amount is 100000 HUF. Handicapped person has been defined as someone whose work capability has been reduced by 67%.

4. LOAN INTEREST DISCOUNT

Buyers can benefit from a loan interest discount in case their loan is no more than 30M HUF. Government defers charges through loan providers during the full loan term of validity, but maximum for the first 20 years of repayment. Its value has been maximized at 6%.

5. COMPLEMENTARY INTEREST SUBSIDY LOANS

Resident couples or single parents can claim complementary interest subsidy for the purpose of buying a new property, if the sale price is maximum 30M HUF excl. land value, incl. VAT value. If sale price is more than that, complementary interest subsidy is applicable only if the governmental support (see breakdown/person/room) exceeds 30M HUF as well. Government helps with loan (max. 15M HUF) interest repayment for a period of 20 years. Meaning, any charge within this period cannot exceed 8% per annum. Maximum terms of validity are 35 years. Buyer can only benefit from the above if s/he took only one similar loan, unless buyer is prepared to pay back any other outstanding loan within 360 days.

6. TAX RELIEF

Within a tax year, 40% of the annual repayment (max. 120000 HUF) can be deducted from buyer's income tax.

Our firm is in contract with HVB Bank Hungary Ltd. and we offer their loan packages for our customers. For your information, please find bank rates, interests, charges and costs enclosed.

- interest on loan related complementary interest subsidy loan supported by government 6,5%
-interest on complementary interest subsidy loan supported by government 8%
-interest on loan derived from remortgaging: 9,6%
-interest on loan not supported by government: 14%/annum
-handling charge: 0,5%/annum
-loan application charge: 25000 HUF
-collateral evaluation charge: 25000 HUF
-service charge: 1%/annum
-loan contract modification charge: 25000 HUF
-interest on late payment: 6%/annum
-partial repayment charge: 2% of installment
-full repayment charge: 4% of installment

The latter two charges are not applicable to complementary interest subsidy loans.
The bank has all rights to change.
Further information: HVB Jelzálogbank