The Green Home Program of the Magyar Nemzeti Bank is expected to start on October 4, in which those who build or buy a property with at least BB energy efficiency can get a loan with an interest rate of up to 2.5%.

Minister of Family Affairs Katalin Novák confirmed her August announcement that the government will supplement this with an even more favorable housing loan with 0% interest for those who move into such a property using the CSOK. With two children, it can be taken up to HUF 10 million, and HUF 15 million with three children.

The parameters of the loans available in the Green Home Program, which starts with an initial amount of HUF 200 billion:

  • mutual amount that can be withdrawn: a maximum of HUF 70 million,
  • optional term: up to 25 years,
  • fixed interest until the end of the term: maximum 2.5%.

According to the information we have received so far, the loan provided by the Green Home Program can be applied for by domestic private individuals who plan to buy a new apartment or build or buy a new family house that has high energy efficiency, i.e. at least BB energy rating and whose annual primary energy demand does not exceed 90 kWh/m². With a loan amount of 10 million and a term of 20 years, the installment of the loan can be around HUF 53,000.

The Green Home Program is expected to be decisive in the market of new real estate, since after June 30, 2022, residential properties with an energy rating lower than BB will no longer be able to receive an occupancy permit. The new product can also bring about a significant change in the home loan market: according to KSH data, last year only 21% of loans were taken out for new homes. In 2020, we took out 79 home loans for construction purposes and 111 billion forints for new home purchases, compared to HUF 636 billion for the purchase of second-hand homes.

At today's press conference, Minister of Family Affairs Katalin Novák confirmed: those who use the MNB's Green Home Program and take up the CSOK (in the case of a new apartment, it is 10 million forints with three children, 2.6 million forints with two children), those with two children will receive 10 million forints, and those with three children will receive in addition, they can use the CSOK loan (with 3% interest for other types of real estate) at 0% interest for up to HUF 15 million.

Source: portfolio.hu/hirado.hu

Featured photo: Facebook/Katalin Novák