Many forget it, although they should not: the best mortgage loan in the country is rotating at a fixed 3%

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Whether someone is moving to another property with a new child or existing child (ren), you may want to consider using the Family Home Allowance (CSOK). In the case of an existing child, this is an allowance that is certainly non-refundable. The CSOK is complemented by the interest subsidized “CSOK loan”: since mid-2019, this loan, which has an interest rate of up to 3%, can be used not only to buy a new but also a used apartment. In addition to CSOK village, it can also be used for the modernization and expansion of a farm, property center or apartment in a small preferred settlement.

The “CSOK loan” can be used by children with two children for up to HUF 10 million, and those with at least three children (or those who commit to that amount) for up to HUF 15 million, and if this amount is not Enough, of course, can be supplemented with a market home loan. The interest subsidy is for the first 25 years of the term, but a longer term is not typical. According to the Currency Center Calculator, the most favorable fixed rate loan interest rate is above 4% among market rate loans (furthermore, 5.25% is the average of bank offers here), for what everyone will want to choose a “CSOK loan” with CSOK. move in with at least two children (or as many commitments).

Compared to the home loan with the most favorable interest rate, very few people use it: in the last year (from the end of September 2019 to the end of September 2020) only 17% of home loans are bonus loans interest (the vast majority of which are 3% CSOK loans). ). According to the latest MNB Housing Market Report, not all CSOK users seem to be taking it: in the first quarter, 23% of home loan issuance was tied to CSOK, which was higher than 18% of CSOK’s loans at that time.

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Despite the interest rate differential of just 3 percentage points, the 0% interest baby loan, which is also subsidized, is much more popular: it accounted for 29% of all new home loans last year, in compared to just 7% of subsidized home loans. The baby waiting loan also has three main advantages over subsidized home loans (1. no interest, 2. can be converted to a subsidy, 3. free to use), but compared to other home loans, the CSOK loan is clearly more favorable, so it is less understandable than especially those with children (whether they are married couples, couples or singles) why market mortgages are chosen over the version with subsidized interest.

At our request to the OTP Bank, it was estimated that up to 35 percent of Hungarian women between the ages of 20 and 54 (who meet social security conditions and KHR conditions) may be eligible for the CSOK and CSOK credit. . Comparing the OSC data with women who can potentially be entitled to housing loans, it can be said that the circle of those who are entitled to subsidized loans can be up to 35% of those who are entitled to housing loans, and a similar proportion would be justified within home loans. In comparison, we are at the level mentioned above, with only 17%.

According to Zoltán Kormos, director of OTP Bank responsible for home creation solutions, many people do not use the currently available home creation subsidies and, in some cases, may lose interest subsidies in excess of 3 million euros. HUF. At the same time, the figures of the largest national bank are better than the market average: the proportion of loans with subsidized interest in the portfolio is more than 30 percent, that is, 3 out of 10 credit institutions receive a loan with more favorable interest rates and the proportion of loans with subsidized interest compared to market participants.