[REVISION HISTORY]

Hungarian banks rate cuts and mortgage competition

Updated 6 times since CLSTR started tracking revisions of this situation.

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2026-09-28 10:23 UTC → 2026-09-29 18:52 UTC · added ~~removed~~

By September 2026, the Otthon Start program has fundamentally reshaped the Hungarian mortgage market. Data from the Magyar Nemzeti Bank indicates that approximately 56,000 mortgage contracts, totaling 2,000 billion forints, were signed by mid-August. Subsidized loans now account for 80 percent of new mortgage contracts, a significant rise from the previous 20 percent share. While the initial surge in demand triggered a spike in housing prices, the rate of increase has recently slowed. In Budapest, the average price per square meter reached 1.41 million forints in August. The program’s popularity is driven by its broad eligibility for first-time buyers and substantial long-term savings. In response, banks like Erste, MBH, and CIB Bank have competed with cashbacks, while OTP and UniCredit focus on interest rate advantages. In mid-September, the Hungarian Ministry of Finance confirmed a professional and legal review of the Otthon Start program is underway. Although the program is not being abolished, experts anticipate a tightening of eligibility criteria to prevent misuse of state funds. Analysts from Bankmonitor suggest new regulations may include mandatory residency requirements, income ceilings, age limits, and stricter definitions of a ‘first home’ to ensure resources reach intended recipients. By late September, Hungarian household lending approached record levels, with total new loan contracts for housing and consumption expected to surpass 2025 annual totals. The volume of new housing loans in the first seven months of the year nearly doubled, driven largely by the state-supported program, which continues to account for approximately 70 percent of new mortgage contracts. Recent market data indicates a shift in real estate trends. While the supply of new homes has reached a five-year high with 10,700 listings, demand for new apartments has dropped by 26 percent compared to the previous year, attributed to affordability issues and Otthon Start requirements.

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