Hungary’s newly launched fixed 3 percent home loan for first-time buyers is unmatched across Europe, Panyi Miklós, Parliamentary and Strategic State Secretary at the Prime Minister’s Office, said on Monday.
Panyi emphasized that the government designed the new loan scheme to support young people in acquiring their first homes without inflating housing prices. “Even with little savings and average income, and without a family, one can now safely buy a home and start an independent life,” he said. “The left-liberal opposition knows this too—that’s why they attack the program in unison,” he added.
The fixed-rate loan, launching on 1 September, offers up to HUF 50 million with a maximum 25-year term. It applies exclusively to first-time home purchases, with the eligibility definition adapted to real-life situations—such as allowing those who inherited small rural properties to participate.
To limit price increases, the program includes strict price caps: properties must not exceed HUF 1.5 million per square metre, and total prices are capped at HUF 100 million for apartments and HUF 150 million for houses.
The government has also initiated a Housing Capital Program with a HUF 300 billion budget to boost new residential construction. Panyi said Hungary currently has around 100,000 properties on the market that meet the program’s criteria, and this number is expected to rise as more previously unsold properties are relisted.
He noted that major property developers are prepared to launch large-scale projects, with tens of thousands of new homes and private constructions set to begin in the coming years. “The combination of ample housing supply, growing development, and price restrictions ensures affordability while delivering meaningful assistance to young homebuyers,” Panyi concluded.