Financing a property purchase in Hungary


In Hungary bank loans and mortgages in Euros or Swiss Francs, as well as Hungarian Forints, are now available. From December 2008 loans and mortgages are mostly available in Hungarian Forints. It is possible to get mortgages for 50-70% of the purchase price of a property.

Although it is possible to borrow from Hungarian financial institutions, most foreign customers arrange their borrowing abroad. This is usually because they are able to get loans at better conditions (e.g. lower interest rates and/or reduced commissions and charges). For this reason there are only a few banks providing loan services specifically tailored to foreigners in Hungary. The main exception is CIB Bank, which specifically caters to the expatriate market: 

Foreigners are not eligible for state support, but property leasing has been started and this way they can obtain loans.

Banks in Hungary do not extend loans based on the borrower’s monthly salary or business income. The amount that can be borrowed with a mortgage is set by the value of the property: with a mortgage credit loan you can usually borrow around 60% of the property’s value.

Mortgages are offered for the following, specific purposes: residential purchase, investment, refurbishment, re-mortgages (unencumbered property only) and commercial use of the property (different terms apply to commercial).

The average THM (Total Credit Fee Ratio) you will be charged lies between 6 and 7 %. Available terms: Between 1 and 35 years.

Further reading

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