The government will launch a new home purchase subsidy scheme dubbed CSOK Plus to help couples in purchasing their first home, Minister of Culture and Innovation János Csák announced at a government press briefing on Wednesday.
The new loan scheme will be available for settlements with populations over 5,000 residents, János Csák said.
The scheme dubbed CSOK Plus, as it builds on the already existing CSOK programme, offers a loan of 15 million forints (EUR 38,960) for couples raising one child, or committing to having one child, 30 million for families with two children or two planned children, and 50 million for those with three or more children or pleading to have three children, at a 3 per cent interest rate, the minister said.
Minister János Csák emphasized during the government briefing that
the primary goal of the scheme is to ensure that every desired child is born as soon as possible.
The interest-subsidized loan scheme is available throughout the country and can be used in towns with more than 5,000 residents, including in conjunction with the rural CSOK (Family Housing Benefit) programme for the purchase of a first shared home. Families need to provide a 10 per cent down payment, while for moving to another residence or expanding housing a 20 per cent down payment is required. The loan term can range from 10 to 25 years.
The CSOK Plus loan scheme can be requested by mothers up to the age of 41. However, women older than 41 who are beyond the 12th week of pregnancy can also apply for the supported loan for a two year grace period.
It is important to note that CSOK Plus loans cannot be used for land purchases. In an effort to curb rising property prices, the upper limit for the value of the property is set at 80 million forints for the purchase of the first shared home and 150 million forints for expanding housing or moving to a larger home due to the birth of more children. There is no such limit for towns with fewer than 5,000 residents.
Upon the birth of their first child, families can request a one-year loan moratorium, extending the loan term by one year.
For the second and subsequent children, 10 million forints of the principal amount are forgiven.
Regarding the rural CSOK programme, the government has unified the non-repayable support amounts for children: 1 million forints for one child, 4 million forints for two children, and 15 million forints for three children.
In addition to the financial support, the government provides free sample house plans to families, helping them save on planning costs. Minister Csák also mentioned that since the introduction of the Family Housing Benefit in 2015, 233,000 families have taken advantage of the programme, with the government allocating 754 billion forints for this purpose.