7-point family policy action plan seemed to be the most exciting, with the interest-free loan of HUF 10 million, followed by a chaotic announcement: new corrections are received daily from the government;
The details have not been fully elaborated.
First, what do we know?
“For Young Married Childbirth Support: Every woman under the age of 40 who is married for the first time is eligible for a $ 10 million discount loan to start living together.
The repayment is suspended for three years on the arrival of the first child, suspended for three years on the arrival of the second child and no repayment of thirty percent of the principal is due. If a third child is born, we will release the rest of the loan in full. ”
It is clear from these sentences that support
- Every freshly married woman goes to 18-40 year olds,
- the loan will be made available to the childless on equal terms, except for the repayment suspension and debt relief referred to by the Prime Minister.
- Subject matter, everyone who has the above conditions can obtain a loan.
10 points quoted from the Prime Minister’s Family Action Plan announcement we think we know.
1. The loan will be interest-free: this would be a $ 41 million monthly loan with a 10 million forint baby loan support and a 20 year maturity. Even if a 3-year suspension had been included, a 17-year repayment period was calculated with a 17-year repayment period.
There will be free use of credit: this includes the possibility of redemption
3. From July 1, 2019, you can enter the program for 3 years: On July 1, 2019, couples will be able to enter the program. You can enter for three years (probably until June 30, 2022), after which the couple can no longer expect this opportunity.
4. The married couple must be a female member of the first marriage, aged between 18 and 40 and have at least three years of employment: this is in line with the announcement of Viktor Orbán. Higher education studies and childcare allowance are included in the three-year employment relationship.
5. This form of aid may take the form of a non-refundable grant: it means the suspension of repayment and the cancellation of an existing debt.
- “At the time of arrival of each child, repayment shall be suspended for a period of three years (during which time the debt shall not be reduced);
6. You must have a child within five years, but if the baby does not come, the loan becomes interest-bearing:
- a child must be born within 5 years of entry (presumably when the loan is approved) in order to remain free of interest.
- So the start is ticking off borrowing.
- If there is no baby in the first 5 years of the term, the loan will become market interest rate (whatever that may be) and even the interest subsidy already used will have to be repaid.
- According to our calculations, a 5% interest subsidy, plus a monthly installment higher by HUF 24,000 (HUF 66,000).
7. Children born after birth cannot be taken into consideration: after July 1, 2019 the child must be born! So the youngsters at the beginning of the family can come into play!
8. The commercial banks will provide the credit and will need a credit review: No subject matter! The loan is subject to normal bank credit evaluation!
9. Interest-subsidized loan: In Hungary, interest-subsidized loans covered by a government program will receive a government interest subsidy.
10. The Government Releases the Costs of Borrowing and Borrowing: Based on the above, it will be completely free for those who give birth to a child within 5 years of entry.
Were the banks aware of the government’s new plans only through the media and only vaguely aware of their role in launching new loans, how and in what way?
If you have a housing goal, would like to take out a home loan, are interested in your options, or may have been interested in the new CSOK changes, are interested in the future details of your new family action plan, call our credit brokerage experts.