Financing

Credit

While planning a real estate purchase transaction, the interested parties frequently ask questions about borrowing opportunities.

In such cases they are referred to our independent credit intermediary partner where, thanks to existing financial institution relationships covering the whole market, the clients are presented with several offers. After that they are able to select the most suitable construction.

Credit application process in 11 steps

  1. The client selects the most suitable property from the offered choices.
  2. Upon consent by the client, the relevant contact details are transferred to our intermediary partner, facilitating the fastest way of contacting the would-be buyer.
  3. Following a quick data check, our credit intermediary partner contacts the financial institutions with a potential to provide credit to the customer in the specific circumstances.
  4. Our client selects the offer with the most suitable conditions.
  5. Assisted by our intermediary partner, the customer gathers the documents deemed necessary for credit appraisal according to the requirements of the particular financial institution.
  6. The credit application is submitted. After that, that bank appoints an appraiser to establish the lending value of the specific real estate. During the appraisal the financial institution may request further documentation. In certain cases a (additional) guarantor or collateral may be required.
  7. The credit appraisal is completed which, all being well, gives the green light for purchasing the selected residential property or investment.
  8. The attorney responsible for drafting the sale and purchase agreement is given the formal requirements of the lending financial institution applicable to sales contracts, based on which the agreement is drawn up. The sales agreement is signed, a copy of which is handed over to the lending institution. The internal proceedings necessary for signing the credit agreement are initiated accordingly.
  9. The credit agreement is signed and notarised.
  10. The own contribution is paid by the buyer (debtor) in full. The buyer submits the declaration of own funds and the applicable home insurance policy.
  11. The credit is disbursed on time in accordance with the provisions of the sale and purchase agreement, as the last instalment of the purchase price in every case.

Documents required for loan application (the list is non-exhaustive)

  • personal identification documents (ID card, address card, tax card) of debtor(s), co-debtor(s), guarantor(s), beneficiary(ies)
  • proof of income submitted by debtor(s), co-debtor(s) and guarantor(s)
  • details of collateral real estate(s) and the related documents of probative value
  • floor plan
  • sales agreement stamped by land registry office upon receipt

Family Housing Allowance (CSOK)

CSOK is a government-financed non-refundable allowance available for purchasing new homes as well, the amount of which depends on the number of the already born or planned children.

CSOK is eligible to married couples, cohabiting partners and single parents for any number of children born, irrespective of their age. In case of any planned children, the allowance may only be requested by married couples, where at least one of parties must be under the age of 40.

Eligibility criteria

  • no criminal record (with regard to any crime, any offence against property, family or child, or any violation related to budget or economic management issues)
  • no public debt
  • in case of 1 or 2 children a period of 180 days of continuous social insurance (interrupted for a maximum period of 30 days)
  • in case of 3 or more children a period of 2 years of continuous social insurance (interrupted for a maximum period of 30 days), of which the last 180 days prior to application must be covered by gainful activity (e.g. employment relationship, self-employed status, primary producer status, contract of service)
  • CSOK is also available for couples without children, provided that the applicants are married and issued with a certificate of the competent Government Office stating that no other advance loan has been requested.
  • Each child must have an ID card, an address card and a tax number respectively.

Amount of non-refundable allowance

Number of children Floor area Amount of allowance
1 child Min. 40m2 flat HUF 600 000
2 children Min. 50m2 flat HUF 2 600 000
3 or more children Min. 60m2 flat HUF 10 000 000

Conditions of credit application with interest subsidy

Homemaking Loan with interest subsidy
Subsidy period First 25 years of tenor
Citizenship Hungarian nationals and EEA nationals with residence registered in Hungary.
Age/marital status As regards married couples without children at least one of the parties must be under the age of 40; there is no age limit for applicants with any number of children.
Purchase price of property (including VAT, without share of plot), or building cost No limit applied to purchase price
Ownership share Applicant(s) to acquire min. 100% ownership of the property concerned with loan
Restriction related to application Submitted within 120 days of concluding the sales agreement
Amount of loan Max. HUF 10 million
Contact

If you may have any questions please feel free to contact us!