During a break at a cabinet meeting on Wednesday, Prime Minister Viktor Orbán said the government has approved a 3pc home purchase credit programme for first-time buyers.
In a video message posted on Facebook, PM Orbán said the new subsidised credit would be available to all Hungarians buying their first home, but would stand to benefit young Hungarians the most.
The prime minister noted that home prices had jumped in recent years, which was "good news" for the majority of Hungarians, who own their homes, but said there were also many who had not yet been able to buy a flat or a house.
The interest rate on the new subsidised credit will be set at 3pc for the full maturity of the loan, up to 25 years. The loans will be capped at HUF 50m and require a 10pc down payment.
PM Orbán pointed out that the rate on the subsidised credit was less than half of market rates, which stood at 6.5pc-8pc at present.
He said another programme to support home renovations would launch on September 1 with the aim of supporting "several hundred thousand" families.