CSOK is a great help for families with multiple children and couples planning to have a child!
Everyone should be aware that the grant comes after the conditions are fully met!
- You have to live in your chosen apartment for 10 years,
- the upcoming CSOK: when the discount is given after the birth of the unborn child!
- It is very important to meet the deadline to have a baby! If the stake is high, the state subsidy and interest will also have to be repaid.
The extended discount loan
- Used homes, if the number of children allows up to 2.75 million HUF available, most subsidies, 10 + 15 million CSOK can be requested for new home purchase / construction!
- Advance CSOK expects the claimant to have children by the signed date.
- The regulation sets 4 years for 1 child, 8 years for 2 children, and 10 years for 3 children, while the conditions must be met!
- For 10 years, the regulations require an apartment there, which the Hungarian State provides for itself in the Land Registry entry as a “prohibition on alienation and encumbrance”.
- Selling with a no-load and alienation ban, only with cumbersome restrictions, the borrowing family can!
- A change of home may be a consideration, but it must also be accompanied by adequate deductible: “The amount of the discount must first be paid into a custody account and will not be refunded until after the new home has been purchased and the charges have been re-written.”
In case of failure:
- Alternatively, if the family were to sell the property, the aid would be paid in full, in addition to the Civil Code. shall be repaid with default interest. In addition, as interest rates rise, the penalty rates will increase in direct proportion.
If you are getting married before completing the advance
- In this case too, the parties concerned must repay the aid, plus default interest, as determined by the Court of Justice.
Particularly deserving situations:
- There are cases where “they are considered to be particularly deserving” eg. in the event of death, death of a child or invalidity, the payment of interest may be deferred.
- “In particularly desirable situations, the Office of Government may suspend the payment obligation in whole or in part for a period of 5 years, and may subsequently decide to discharge the obligation to pay in whole or in part. It can only be claimed if “no change in the life of the person to be assisted is expected to result in a deferred payment obligation.”
If the obligation to have a child is not fulfilled
- In 10 years, we will be able to fulfill 2 of our 3 children, then we owe HUF 7.4 million to the state, because we can keep the HUF 2.6 million for 2 children. In this case, starting from 4.5% we have to repay HUF 10.73 million together with the penalty interest, because the basic interest rate of the previous 10 years is what we have to take into consideration. As part of the equity procedure, you may request a payment in installments, or a deferral!
If having a baby is only partially fulfilled,
The amount to be repaid is as follows:
- ‘The amount of the allowance for children at the end of the period of childbirth shall be deducted from the amount of the advance
- If the number of existing children is less than two at the end of the due date, the full amount of the housing allowance shall be repaid.
- The amount of the advance CSOK shall be reimbursed, plus interest for late payment, within 60 days following the expiry of the time limit. “
It is not worth taking the CSOK discount loan lightly, because if we are unable to meet our commitment later on, because it will be a heavier burden, we would be penalized with default interest than we would have thought. Interest on late payments:
- the sum of HUF 10 million has to be repaid with the default interest amounting to 5 times the base rate, which is 10.73 million as mentioned above!
If you have a home business, would like to take out a home loan, are interested in your options, or you may have been interested in CSOK changes, call our credit broker to help you make a professional decision!