Otthon Start mortgage program undergoes regulatory review in Hungary

The Hungarian Ministry of Finance has confirmed that a professional and legal review of the ‘Otthon Start’ subsidized mortgage program is currently underway. While the program is not being abolished, experts anticipate a tightening of eligibility criteria to prevent misuse of state funds.

The Otthon Start program, which offers a fixed 3 percent interest rate, has seen massive demand, with total contracted amounts exceeding 2,000 billion forints. Currently, this construction accounts for approximately 80 percent of market transactions.

Analysts from Bankmonitor suggest that to ensure resources reach young, first-time homebuyers, new regulations may include mandatory residency requirements, income ceilings, age limits, and stricter definitions of what constitutes a ‘first home’.