Otthon Start

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Otthon Start Program – Government Housing Support in Hungary

The Otthon Start program is a new Hungarian government housing support scheme designed to make it easier to purchase or build a first home.

The core of the program is a state-subsidized mortgage with a fixed 3% interest rate, where part of the interest is covered by the government.

Otthon Start Program – Key Facts

Fixed 3% mortgage interest rate
Maximum loan amount: 50 million HUF
Maximum loan term: 25 years
For purchasing a first home
Minimum down payment: from 10%
Available from: September 1, 2025 through Hungarian banks

This is considered one of the cheapest housing loans in Europe, thanks to government interest subsidies.

What Can the Loan Be Used For?

The loan can be used for:

purchasing an apartment
purchasing a family house
building a new house
purchasing a farmstead or rural property (from 2026)

Loan Amount and Conditions

Maximum loan: 50 million HUF
Maximum term: 25 years
Interest rate: fixed 3% for the entire period

Example Monthly Payments (25 years)

Loan Amount Monthly Payment
20 million HUF approx. 95,000 HUF
30 million HUF approx. 142,000 HUF
50 million HUF approx. 237,000 HUF

Property Value Limits

Not every property qualifies for the program.

Maximum property value:

Apartment: up to 100 million HUF
House or rural property: up to 150 million HUF

Maximum price:

1.5 million HUF per m²

Who Can Apply?

Generally, applicants must:

be at least 18 years old
have a registered address in Hungary
have verified income
have Hungarian social security status (TB)
not have owned a home in the last 10 years (with some exceptions)

Important:

✔ marriage is not required
✔ having children is not required

Important Rules

the property cannot be sold for at least 5 years
property transfer tax must still be paid
the property may be rented out

Why This Program Is Important

The goal of the program is to help young people own homes instead of staying in rental housing.

Because of the fixed 3% interest rate, monthly payments can often be 30–40% lower than standard market mortgages.

Can It Be Used as an Investment?

Yes – under certain conditions.

The rules allow:

renting out the property
not living in the property yourself

The only restriction is that it cannot be sold within the first 5 years.

This means many investors follow this strategy:

take the 3% loan → buy property → rent it out.

Example Investment Calculation

Example:

Property price: 50 million HUF

Down payment: 10 million HUF

Loan: 40 million HUF

Monthly mortgage payment: approx. 190,000 HUF

Average rent in Budapest:

200,000 – 280,000 HUF / month

👉 In many cases, the tenant covers the mortgage payment.

After 25 years:

the property is fully paid
the loan is repaid
the apartment is fully yours

Why This Loan Is Unique

Typical housing loan:

6–8% interest

Otthon Start:

3% fixed interest

Example for a 40 million HUF loan

Interest Monthly Payment
3% ~190,000 HUF
7% ~280,000 HUF

➡️ around 90,000 HUF difference per month

Strategies Used by Investors

Many investors already use the following approaches:

Small Apartments

35–45 m²
easier to rent out

University Cities

For example:

Budapest
Debrecen
Szeged

New Properties

Advantages:

fewer maintenance costs
higher rental income

Important Limitations

There are some restrictions:

❗ maximum apartment price 100 million HUF
❗ maximum 1.5 million HUF / m²
❗ property cannot be sold for 5 years

Why Property Prices May Rise

Experts believe the program could increase housing demand.

This may lead to:

rising housing prices
stronger demand for new homes

A similar trend was seen earlier with the CSOK program.

A Common Strategy

Many buyers plan the following:

1️⃣ take the Otthon Start loan
2️⃣ rent out the property
3️⃣ sell after 5 years
4️⃣ purchase another property

➡️ effectively building a real estate portfolio over time