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HATC SAMPLE EDITION:
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4th July, 2025
Analysts assess impact of 3% mortgage scheme
According to a quick analysis by financial platform Bankmonitor, the new 3% loan for first-time home buyers offers an exceptionally favourable alternative to current market rates, which are in the 6.5-8% range, and will broaden access to credit for tens of thousands of buyers.
Bankmonitor calculates that, at 3% interest, borrowers would pay Ft 166,000 in monthly instalments on a Ft 30 million loan, compared to Ft 223,000 at current market rates, resulting in savings of Ft 14 million over the 20-year tenure of the loan.
This could enable buyers to borrow more and bid higher for properties, potentially fuelling price increases across the market.
Based on the transaction numbers known so far this year, the housing market could easily exceed 120,000 transactions in 2025. Based on this, 30,000-36,0000 sales contracts could be related to first-time property purchases. This is a substantial part of the real estate market, adds analyst József Árgyelán of Bankmonitor.
He noted that favourable interest rates might encourage even those with sufficient savings to take out loans, potentially driving prices higher, unlike the limited impact of the earlier voluntary 5% APR cap.
Prime Minister’s Office leader Gergely Gulyás on Thursday unveiled some details of the scheme.
Borrowers need at least two years of social security coverage to be eligible and the value of the property must not exceed Ft 100 million.
The government has also set a Ft 1.5 million per square metre threshold for both purchases and new builds.
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Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).
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