A first home with no equity? Here is a solution for young people
From September, young people will have a new opportunity to buy their first home - even without any equity. According to an article in vg.hu, László Balogh, chief economic expert of Ingatlan.com, spoke in detail about the discounted, fixed 3 percent interest rate Home Start loan program. The scheme can help young people in small towns earning a gross of HUF 540,000 to get a housing loan of up to HUF 30 million, and the interest-free working loan that can be applied for alongside it can also replace the own resources.
From September, the Home Start programme will be launched, which can offer real help to young adults who are considering buying their first home - even if they have no savings at the moment. vg.hu reports that László Balogh, chief economist at Ingatlan.com, demonstrated how the subsidised loan can work in practice through a concrete example.
A 25-year-old woman earning 540,000 HUF gross and living in a small town can get a housing loan of up to 30 million HUF under the programme, at a fixed interest rate of 3 percent. The scheme can be applied for on a self-financing basis, but the interest-free working loan of up to HUF 4 million linked to the programme allows for the replacement of the self-financing. The combination of the two loan types increases the monthly repayment by only HUF 33,000, while full financing is also available.
According to the expert, the preferential scheme is a realistic option for the purchase of a new apartment in a small town or a more spacious second-hand property. In a small town, a loan of up to EUR 30 million with an excess can be sufficient for a second-hand home of up to 70-80 square metres.
An important detail is that inherited home ownership is not necessarily a disqualifying factor: the Home Start programme only considers properties worth more than HUF 15 million as an obstacle, so an inheritance of HUF 14 million, for example, does not exclude access to the loan.
The aim of the programme is to help young people to start their own lives and to give people who have not been able to start this journey because of a lack of self-financing the opportunity to buy a home.