Hungarians consider the Home Start Programme a good opportunity
The Home Start Programme, which is a home creation loan enabling people to purchase their own home with monthly repayments equivalent to the cost of renting, has been available since September. According to the latest representative survey by the Mária Kopp Institute for Demography and Families (KINCS), nine out of ten Hungarians are aware of the Home Start Programme. Two-thirds believe that the fixed 3% repayment instalment provides security for homebuyers and that the programme also helps those thinking about starting a family. Over four-fifths of respondents consider it important for families to live in their own property, and two-thirds believe that repaying a loan is more worthwhile than paying rent.
The Home Start Programme offers first-time homebuyers an interest-subsidised loan of up to HUF 50 million with a fixed interest rate of 3% and a term of 25-year. A KINCS survey conducted in September revealed that an overwhelming majority of Hungarians, 92%, have heard of the Home Start Programme, with 16% planning to take out the loan for themselves or know a family member who plans to use it.
The survey revealed that one-third of people considering taking out a loan would use the money for themselves, while 42%, would use it to purchase property for their children. The largest proportion of people applying for loans for themselves would be aged 30-49. 22% of respondents are considering borrowing between HUF 11 and 20 million, while 21% plan to apply for the maximum loan amount of HUF 50 million. A similar proportion (21%) are targeting an amount between HUF 21 and 30 million. The majority of respondents and their family members, 62%, plan to raise the necessary own funds for the Home Start Programme primarily from their own savings. A third would seek help from their parents (32%), and almost a quarter would use state support, such as the Baby expecting subsidy (23%). Among the respondents, 58% of parents said they would help their children with the down payment. Most would contribute between 5 and 10 million HUF to the loan.
The survey also revealed that most people would use the loan to buy a second-hand flat (43%) or a family home (37%). 10% of respondents are considering buying a new flat. Most respondents plan to purchase property in a village (31%), but many are looking for a new home in Budapest (23%), a county town (22%) or a smaller town (more than 20%).
More than four-fifths (84%) of Hungarians consider it important for families to live in their own property. 73% think it is a good idea for the state to support the purchase of owner-occupied homes rather than rented accommodation. Two-thirds of respondents (68%) believe that taking out a fixed 3% mortgage under the Home Start Programme is more worthwhile than paying rent. Almost two-thirds of people (64%) believe that the Home Start Programme provides security when buying a first home, because the repayment instalments remain unchanged throughout the entire term. 60% of respondents believe that the fixed 3% mortgage programme also helps those who want to start a family. Over half of Hungarians (56%) believe that the Home Start Programme helps people who would not otherwise be able to buy their own home, or would only be able to do so many years later. This statement was most likely to be agreed with by those under the age of 30.
According to data from September, the programme has already attracted more than 15,000 loan applications, which has also had a noticeable impact on the property market. While it is primarily those under the age of 40 who are taking advantage of this opportunity, it can also be combined with other forms of family support, offering favourable opportunities for married couples and families with children. The Home Start Programme is therefore enabling more and more families to become homeowners.
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