Otthon Start Program transforms Hungarian mortgage market

The Otthon Start Program, a subsidized mortgage initiative launched in September 2025, has significantly transformed the Hungarian housing market over its first year. Data from the Magyar Nemzeti Bank indicates that the total value of these loans has exceeded 2,000 billion forints, with projections for 2026 reaching between 2,500 and 3,000 billion forints.

The program, which offers interest rates as low as 3 percent, has shifted the market composition; state-supported loans now account for approximately 80 percent of new mortgage contracts, up from a previous 20 percent. This has also led to an increase in the average loan amount per transaction, rising from roughly 20 million forints to over 27 million forints.

Despite the surge in lending, recent data from ingatlan.com shows a cooling in market demand. In August, interest in available residential properties fell by over 40 percent compared to the previous year, with significant declines noted in Budapest and county seats. Experts suggest this decrease reflects a normalization of the market following the initial wave of demand triggered by the program's launch.