K&H: Where is Otthon Start doing best?

Since the launch of the Home Start Program, interest in the state-subsidized preferential home loan has been continuous and intense. For K&H, it is clear that prospective buyers who were uncertain in recent years have now re-appeared on the market. Although the volume has now stabilized somewhat compared to the extremely high loan application data of the first weeks, the current numbers still significantly exceed the activity typical of similar periods in recent years. The main attraction of the program remains that the state’s long-term interest subsidy and the high loan amount together result in a construction that first-time home buyers have been waiting for for a long time.

Condominiums play a leading role

Based on the data received by K&H, the average loan amount taken out by applicants is HUF 35 million, which is accompanied by an average of 25 percent down payment. This clearly shows that the program provides real help to those young people and families who were previously unable to enter the market due to the market interest rate level and high down payment requirements. The distribution of applications continues to show that the capital and county seats account for more than half of the total demand, while the activity of rural areas is also continuously strengthening, and above-average demand can be observed in many places.

In terms of loan purpose, condominiums are still much more popular than family houses. This is partly because the financing of modern, smaller-sized, energy-efficient properties is better suited to the life situation of the applicants and the maximum loan amount offered by the program. Meanwhile, the affordability of rural family houses remains more favorable, but the stable demand for apartments shows that first-time home buyers typically prefer smaller, more compact properties.

Counties and percentages

According to K&H data, based on the contract data of the counties, it is clear that the program is balanced nationwide, but at the same time, interest is outstanding in several regions. Budapest accounts for nearly 27 percent of the total contract stock, which continues to be the most active area. Bács-Kiskun and Pest counties follow the capital with a share of more than 9 percent each, indicating a strong rural presence. The line is followed by Hajdú-Bihar County with around 6 percent and Borsod-Abaúj-Zemplén County with nearly 5.7 percent, which shows that the Great Plain and the northern Hungarian region are also actively taking advantage of the opportunities offered by the program. These rates clearly indicate that the subsidized construction plays a decisive role in home purchase decisions not only in large cities, but also in rural areas.

Gergő Molnár, Head of Retail Marketing at K&H, highlighted: “Since the launch of the Home Start Program, we have experienced that the state-supported, high-amount home loan is a significant help to those who want to buy their first home. The program has essentially opened a door through which many young people and families have a realistic opportunity to acquire their own home for the first time. The stable support background, the predictable conditions and the significant interest rate advantage together create an environment that offers home buyers a sustainable, secure solution in the long term. It is particularly pleasing that demand is also brisk in rural areas, which shows that the program truly serves national needs.”

Based on current trends, K&H expects the program’s popularity to remain stable in the coming months.