Hungary Replaces Otthon Start With Wekerle Plusz Scheme

Hungary is set to replace its subsidised Otthon Start home loan programme with a new scheme called Wekerle Plusz. Announced by the prime minister, the proposed programme will introduce stricter eligibility rules for homebuyers and different interest rates for new and used residential properties.

Under the announced framework, eligible first-time buyers aged 18 to 41 will be able to access fixed-rate loans at 3% for new-build homes and 5% for used properties.

Applicants will also need to live in the purchased property for at least five years. The transition date and detailed regulations have not yet been confirmed.

New Eligibility Rules for Homebuyers

The Wekerle Plusz scheme will narrow eligibility compared with Otthon Start. Applicants must be aged between 18 and 41 and qualify as first-time buyers under the new rules. The applicant and their spouse must each hold less than a 50% ownership share in any existing property.

The programme will also introduce a minimum five-year residency requirement. These conditions are intended to focus the subsidised financing on eligible buyers purchasing a home for their own use.

Existing Otthon Start loan contracts will remain valid, according to the announcement.

Different Interest Rates for New and Used Homes

The new scheme will offer a fixed 3% interest rate for new-build properties and a fixed 5% rate for used homes. This creates a difference in borrowing costs based on the type of property being purchased.

The 5% rate for existing homes is higher than the rate offered under Otthon Start. Property market analysts expect the change to affect segments that have relied heavily on subsidised financing, including smaller flats in Budapest and panel apartments.

The actual impact will depend on the final rules and market conditions.

Also Read: Budapest Agglomeration Property Prices Rise by 11.5%

Housing Savings Support to Return

The announced package also includes renewed state support for housing savings accounts, which were discontinued in 2018. Under the proposed structure, savers will receive a state contribution of 10% for a five-year term or 20% for longer terms.

The support is intended for people saving towards a future home purchase or renovation, including those putting money aside for their children.

The new contribution rates are below the previous 30% level. Further details are expected when the government publishes the scheme's regulations.

Also Read: Futureal-Linked Fund to Acquire Budapest Outlet Centre

Renovation Loans and Grants Expanded

Hungary also plans to expand its energy-efficiency renovation programme. The maximum loan amount will rise from 6 million to 15 million forints, with a fixed 3% interest rate.

A state grant of 30% to 50%, capped at 7.5 million forints, will also be available subject to the programme's conditions.

Applicants will need to achieve at least a 30% improvement in energy performance. The expanded programme is expected to target around 20,000 properties annually.

Together, the proposed measures could shift demand towards new-build housing while supporting renovations of older homes. The exact timing and implementation details remain subject to further government announcements.

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