This week’s press conference announces that it will be possible to apply for a $ 10 million discount on interest-subsidized loans for families with two children as of December 1, 2018, according to Katalin Novák, responsible for family and youth affairs at the Ministry of Human Resources Secretary of State!
Apply for the $ 5 million raised interest-subsidized loan
He also said that families with three children will be able to apply for the $ 5 million raised interest-subsidized loan from December 1 onwards. The preferential loan can be applied for by two or three children in advance. This is the upfront CSOK. A government decree on extending the Family Housing Benefit (CSOK) is now available in the Hungarian Gazette.
We asked what do you expect, how many families with two children will use the new opportunity? The answer was: “Almost 90% of the large families who take CSOK have applied for the associated soft loan, so they expect a significant number of applications with two children as well.
Katalin Novák also reiterated: “The government is extending the one-off subsidy of HUF 10 million, only the interest rate subsidy of a fixed 3% (up to 10 million) home loan to two children.”
According to our calculations, compared to the most favorable 20-year market loan structure, the affected families can save about 120 thousand HUF a year from the repayment installment.
This loan will only be available for newly built homes
Unfortunately, this loan will only be available for newly built homes, so the supply side of the housing market, builders and investors, will be able to get it and swallow this new type of government support.
The exact market effects will be presented when the revised new legislation of the CSOK is officially published, but it is predictable that increasing the preferential loan amount for families with three children and the possibility of a $ 10 million subsidized loan for those families with two children also makes homeowners who have not been able to obtain more favorable home loans at market rates so far.
Assessment of creditworthiness
The assessment of creditworthiness will be carried out in the same way as before, the repayment tranche of fixed and soft loans for 25 years will be lower than that of market-based loans.
All the information about a new family home improvement discount and discounted home loans is available in one place upon request. We answer individual cases, explore the most important practical issues, and help adjust to the new CSOK.