However, there are a few things that older people need to pay attention to if they want to be successful. There are several solutions for pensioners to benefit from the home renovation subsidy.

Even pensioners can take advantage of the new home renovation subsidy

The credit broker draws attention to the fact that part of the maximum HUF 6 million subsidy, which will start on June 3, 2024 and requires energy savings of at least 30 percent, is a non-refundable subsidy, but another part is a loan, the terms of which may cause problems for pensioners.

These conditions must be met in order to receive the home improvement grant

Among the conditions, it may be particularly important for the elderly that the applicant cannot turn 75 when the loan expires, so in the case of a ten-year term, this means that in practice such a loan can be applied for at the age of 64. Bankmonitor proposes two solutions, however

both options require certain compromises to be made.

The first solution is a shorter term, which naturally involves an increase in the repayment installment, while the other option could be the involvement of a younger co-debtor with adequate income. Then, on the other hand, the repayment installment charged to them on paper may cause problems for his other loans.

At the same time, the income required to take out a home renovation loan can even be an old-age pension, in which case you just have to pay attention to fit into the so-called income-proportional repayment index. This

up to HUF 600,000 per month means that we can spend a maximum of half of our income on loan repayments.

According to the credit broker, it is also expected that a minimum income will be determined for taking out a loan, but there is no precise information on this yet. However, as written, this is usually the current net minimum wage, which is currently HUF 177,400. This is lower than both the average pension of HUF 231,000 and the median pension of HUF 205,000, so this limit is not an obstacle for the majority of pensioners.

It is also worth considering that, of course, it is not mandatory to use the entire amount of HUF 6 million - for which HUF 1 million is also required, as the expected 30 percent energy savings can be achieved even by replacing the windows, which in an average family house can be achieved from half of this amount.

Source: World economy

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