A government decree on housing loan reduction has already been published and has already been announced in an earlier article. The loan relief plan was first announced by the government in May this year, and the specific decree has just been published in the Hungarian Gazette.
The purpose of the decree is that banks will release HUF 1-1 million from existing home and free-for-use mortgages as well as new home loans for children born after 2018. The beauty of the thing is slightly diminished by the fact that this discount is only available for the third child.
No need to wait until the birth
We can also withdraw money when the third baby is still on the road (after the first 12 weeks) or when the adoption comes with a bonus.
Banks charge one million forints as a prepayment , which they receive from the state, and do not charge the borrower a prepayment fee in this case.
The law has now fixed this already known information, and several new features have emerged, mainly in the process.
We can apply for a loan at the district office
The office will contact the bank, and it is free for clients.
- Spouses and partners are eligible, but they can only apply together. They must hold a combined ownership of at least 50% in the home covered by the loan.
- When a couple requests a discount, not all of their children need to be in common – except for the third child, of course.
- The process is set to take place very quickly, according to the government’s decision. Once a decision is made that there is a legitimate demand for a credit reduction, the bank will already receive the amount of the $ 17 billion that has been set up for this purpose within four days.
The bank will recalculate our repayment
If you look at the credit limit and the amount of credit you have sold, it turns out that 17,000 kids are ‘scaled’ to home loan support.
- The incremental one million forint prepayment modifies the further repayment of the loan, and the bank informs the affected parties that the installment installments will be formed after the subsidy is received.
Of course, one million forints cannot raise a child, but this is another small subsidy for families who would take out a loan, just like CSOK.