Splitting my time between Budapest’s buzzing streets and the laid-back wine hills of Lake Balaton, I’ve seen firsthand how Hungary’s property market can feel like a moving target – especially if you’re a first time buyer. The government’s new Otthon Start loan scheme is shaking things up, offering a genuine chance to get a foot on the ladder without the usual hoops. I’ve bought homes in both places, so let’s cut through the jargon and figure out what this means for you in 2025 – whether you’re ready to pack your bags or just sharpening your scepticism.
What Is the Otthon Start Loan and Who Actually Gets It?
The Otthon Start loan is Hungary’s latest bid to help first time buyers onto the property ladder. The headline? A fixed 3% interest rate for up to 25 years, with a maximum loan of 50 million forints (about €125,000), and a minimum down payment of just 10%. There’s no age limit, no requirement to start a family, and you don’t need to be married. The new Otthon Start loan scheme is available to every natural person purchasing residential real estate for the first time, without explicit restriction to Hungarian citizens only. The only real hurdle: you must have at least two years of social security contributions in Hungary.
Let’s put it plainly: this is a rare moment when the government isn’t nudging you towards parenthood or matrimony before giving you a leg up. If you’ve never owned a home, you’re in the running. The only caveat? The property can’t be a luxury pad – there’s a price cap of 1.5 million forints per square metre, or 100 million forints for the whole property.
Key Points:
- Up to 50 million forints loan
- 3% fixed interest rate (up to 25 years)
- 10% minimum down payment
- No age or family status requirement
- Must have two years’ social security in Hungary
- Price cap: 1.5 million forints/m², 100 million forints total
The Market Reality for First Time Buyers in Hungary
Now, before you start browsing listings, a reality check: Hungary’s property market is in the midst of a price surge. After a brief lull, prices are rising at a brisk pace – Budapest, in particular, has seen increases of up to 19% in 2025, with the national average not far behind at 13-15%. The average price per square metre in Budapest is now between 1.2 and 1.5 million forints, nudging right up against the Otthon Start cap.
This means that, while the Otthon Start loan is generous on paper, it’s entering a market where the supply of affordable homes is shrinking. Investors, flush with cash from maturing government bonds and pension savings, are snapping up smaller flats, making competition fierce for the very properties first time buyers are targeting.
Table: Average Prices 2025
| City | Avg. Price per m² (HUF) | Annual Growth Rate |
|---|---|---|
| Budapest | 1.2 – 1.5 million | 11.8 – 19% |
| Debrecen | 882,000 | 13 – 17% |
| Szeged | 792,000 | 10 – 12% |
| National | 1.2 million | 13.8 – 15% |
How Does the Otthon Start Loan Stack Up?
Let’s talk monthly payments. A 20 million forint loan over 25 years comes to around 94,000 forints per month; a 30 million forint loan, about 142,000 forints monthly. Compared to market-rate mortgages (currently 6.5–8%), the Otthon Start’s 3% is a steal, potentially saving buyers millions of forints over the loan’s lifetime.
But: banks will still assess your creditworthiness, and the paperwork is unlikely to be a walk in the park. The scheme is set to launch in September, so if you’re keen, now’s the time to get your documents in order.
What’s the Catch?
Here’s where the Canadian pragmatism kicks in. The Otthon Start loan is a solid offer, but it can’t outpace the market’s own momentum. Prices in Budapest are expected to keep rising, and the supply of qualifying properties is tight – especially in the capital and other major cities. If you’re looking outside Budapest, you might find more options, but even there, prices are climbing.
One key point that often flies under the radar is residency. While the scheme doesn’t explicitly limit eligibility to Hungarian citizens, banks are notoriously strict about who they lend to. In practice, you’ll need permanent residence or a similarly secure legal status in Hungary to stand a chance at getting a mortgage. Without that, even with the government’s backing, banks will likely give you the cold shoulder.
For foreigners, this means that before you start house-hunting, securing permanent residence – and a solid two-year track record of social security contributions – is essential. Otherwise, the dream of a subsidised loan might remain just that: a dream.
The government’s intention is clear: make home ownership possible for those who’ve been priced out. But with investors and seasoned buyers also in the mix, first time buyers in Hungary will need to move quickly and be prepared for stiff competition.
Downtown apartment building in Budapest, ideal sizes for first time buyers in Hungary.
Internal and External Resources
If you want a deeper dive into the Hungarian property market, check out my ebook that includes several chapters dedicated to buying property in Hungary. For official details on the Otthon Start scheme, the Hungarian government’s announcement is worth a read.
The Outlook for First Time Buyers in Hungary
The Otthon Start loan is a rare bit of good news for first time buyers in Hungary, offering a real chance to break into a market that’s been running away from them for years. The catch? You’ll need to be quick, savvy, and not too sentimental about location. The property ladder here is more like a moving escalator, but with the right timing, and a bit of luck, you might just catch your step.
If you’re considering making the leap, keep an eye on the numbers and don’t be afraid to ask for help. The market’s tough, but so are you. And with the Otthon Start scheme, FIRST TIME BUYERS IN HUNGARY finally have a fighting chance.
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Anikó Woods is a Canadian-Hungarian writer, technology specialist, and digital strategist who swapped Toronto traffic for Hungarian bureaucracy. She’s the creator of HOW TO HUNGARY: Budapest & Beyond. Since moving to Hungary in 2017, she’s been deep in the paperwork trenches – fact-checking, interviewing experts, and helping others make sense of the madness. Her writing turns chaos into clarity, with a few laughs (and wine recommendations) along the way.