Free state millions for Hungarian families – we haven’t seen this in four years

The aforementioned announcement from the largest Hungarian lender was about claims and not about the conclusion of contracts, so its data cannot be compared one by one with the following figures for the banking sector, in any case we were curious and if the contracts indicate a similar phenomenon. If we look only at the “traditional” CSOK, we are not exactly:

CSOK utilization fell to a record low four years ago in the second quarter of this year, only the first quarter of CSOK was weaker.

4,837 households entered into CSOK support contracts in the second quarter, 18% less than in the same period of 2019. During the first half of the year, banks recorded a 2% drop.

In three months, HUF 13.8 billion of contracts to support CSOK were concluded, 33% less than a year earlier. For the first half of the year as a whole, the decline is 13%.

Therefore, in the last year (until the end of June), CSOK reached a contractual amount of HUF 75 billion, which is almost a four-year low (2016 was an even more “familiar” year for CSOK for the market). , but in general the decrease is not significant.

However, if we take into account the village CSOK that has existed for a year, we get a completely different picture.

In the second quarter, the village CSOK already preceded the “non-villager”, as it entered into contracts worth 15.2 billion HUF (due to the time required for modernizations and expansions, this does not mean disbursement).

Of course, some of the “non-rural” CSOK are also used in small settlements: it mainly includes the construction of houses and the purchase of real estate (without the obligation to renovate), while the rural CSOK can be used to buy AND renovate used properties and renovate and / or extend existing properties. .

Together with CSOK village, the second quarter brought a 40% increase in this form of family support compared to the same period last year.

While CSOK reached 75 billion, rural CSOK reached 53 billion in the last four quarters. Of the latter, 41 billion HUF went to the purchase and modernization of used flats, while 12 billion HUF went to the modernization and expansion of existing flats in small settlements.

In terms of the number of pieces, of course, the ratio is different. The CSOK village was used by 9,600 families in one year (this is the number of contracts), of which 5,300 used used properties and improved them. If this could have been enough to resume population growth in 900 settlements where there was a population decline in the past, everyone can imagine, Alpár Gyopáros, the government commissioner responsible for the development of modern settlements, recently spoke about this. :

Anyone who buys or builds CSOK real estate can also claim a subsidized “CSOK loan” with an interest rate of up to 3% if they meet the banks’ credit assessment criteria. According to data received from the MNB, 15,000 people took advantage of this opportunity worth 146 billion HUF last year.

Children with two children up to HUF 10 million can apply for the subsidized loan and children with three children for both used and new real estate.

These figures mean that 16% of all home loan placements were “subsidized” CSOK loans. At the end of 2019, their ratio was the highest.

In our article below, we showed how many CSOK customers had used as of June 30 of the previous year:

This will also be discussed at our Tuesday Hybrid Lending 2020 conference, it is worth registering for the online tickets that are still available!

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