Hungary’s government will replace the previous administration’s Otthon Start housing loan scheme with a new programme offering more targeted support for young homebuyers, housing savings and energy-efficient renovations from 2027.
The Wekerle Plusz programme will retain subsidised 3 per cent mortgages for eligible buyers of new homes, while loans for existing properties will carry a fixed 5 per cent interest rate. Prime Minister Péter Magyar outlined the plans during his parliamentary presentation of the 2027 budget. Unlike Otthon Start, which had no age limit, Wekerle Plusz will be available to applicants aged 18 to 41 seeking to buy or build their first home.
Stricter conditions for subsidised home loans
Under the new Wekerle Plusz scheme, the fixed 3 per cent mortgage rate will apply to newly built homes and house construction. Buyers of existing properties will be offered loans at a fixed 5 per cent interest rate. Applicants must also commit to living in the purchased property for at least five years.
Neither the applicant nor their spouse may hold a 50 per cent or greater ownership share in another residential property, a condition intended to limit investment purchases and direct support towards people seeking a home of their own.
Marriage and having children will not be eligibility requirements. The government also plans to reduce the commissions banks receive on subsidised loans. Existing Otthon Start loan agreements will remain valid, according to the announcement.
Magyar criticised the previous scheme, arguing that it had not adequately helped young people without substantial savings or financial support from their families. He claimed that 59 per cent of subsidised loans had gone to the wealthiest 10 per cent of the population, with some properties purchased for investment rather than owner-occupation.
State support for housing savings returns under Wekerle Plusz
Wekerle Plusz will also introduce a state-supported housing savings scheme to help prospective buyers build up the deposit needed to purchase a property. People who save regularly for years will receive a non-repayable state contribution on their deposits, writes Telex.
The contribution will amount to 10 per cent during the first five years, increasing to 20 per cent from the sixth year onwards. The scheme is intended to make it easier for young people to accumulate the initial capital required for a mortgage.
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Bigger loans and grants for home renovations
The third pillar will support energy-efficiency improvements. The maximum subsidised loan will rise from HUF 6 million to HUF 15 million, with a fixed interest rate of 3 per cent. Applicants may also qualify for a non-repayable grant covering 30 to 50 per cent of eligible costs, capped at HUF 7.5 million.
To qualify, renovations must deliver energy savings of at least 30 per cent. Properties in the poorest energy condition will be eligible for the highest level of support. The funding can cover improvements such as insulation, replacement windows and modernised heating systems. The scheme is intended to be available nationwide, without marriage or childbearing requirements and regardless of age, according to the announced plans.
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Other housing measures to continue
The government has also confirmed that the preferential 5 per cent VAT rate on new homes will remain in place in 2027. Existing family support measures, including the babaváró loan, CSOK housing subsidies and rural CSOK, as well as household utility price reductions, will remain unchanged.
Separately, the Wekerle Sándor Housing and Student Accommodation Construction Programme will allocate HUF 30 billion in EU funding in 2027 towards affordable rental homes and student accommodation. A further EUR 550 million is planned over the following three years.
The government’s stated aim is to make housing support more accessible to young people and households with limited savings. The final impact will depend on the detailed eligibility rules and implementation of the new programme.
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