In case if you buy a flat from our company, you have the opportunity to apply for state-aided loan provided by several commercial banks.

Currently, Government Decree No. 12/2001. (I. 31.) regulates state subsidies on flats.


- What to know about state subsidies on flats?
- Supplementary interest subsidy
- Housing allowance
- Tax refund subsidy
- What to know about the tax allowance of maximum of
HUF 240.000?



What to know about state subsidies on flats?

You certainly would like to know what kinds of state subsidies can you count on before purchasing a flat. The system of state subsidies on flats aids the different forms of home purchase by grants and reduction of interest charges. However, often its is difficult to unravel the conditions of subsidy from the text of decrees that is why we wish to help you by the interpretation of the opportunities provided by law.



Interest subsidies

As their name shows, interest subsidies are subsidies that the state grants so that you could pay the interest of loans on flats. Thus, you pay only the interests reduced by subsidy.



Supplementary interest subsidy

The state contributes to the repayment of the loan taken by you, by means of supplementary interest subsidy in case if you apply for the loan for the purpose of building a new house, or of buying a new flat that had been built for the purpose of sale.

Your are eligible for supplementary interest subsidy in case if
- you are married,
- or a parent raising a child.

You can apply for a supplementary interest subsidy if you are to build a new flat or if you would like to by a new flat that had been built for the purpose of sale and the building costs, purchase price (land price not included) do not exceed HUF 30 million.

In the event of building a new flat it is important that the date of issue of the building permit should not be earlier than January 1, 1999. You do not need to reckon the price of land in the building costs, but then it has to include VAT! The date of signing the contract of sale in case of buying a new flat has to be a date after January 1, 2000.

You can draw on supplementary interest subsidy (for the period of maximum 20 years) in case if the amount of loan does not exceed HUF 10 million. It is good to know that you can utilise supplementary interest subsidy only once.



Interest subsidy for Mortgage Debentures

Loans from source of mortgage debentures facilitate establishing a home not only for those who build or buy a new flat but also for those who wish to buy, to modernise or to enlarge an older flat. The interest of these kind of loans is lower than the interest of market loans and the sum of the former can not exceed HUF 30 million. The subsidy is in the interests, that is why you pay lower interests and thus lower repayment installments.



Direct subsidies - housing allowance and tax refund subsidy

Direct subsidies are not refundable subsidies, that have in common that you can apply for them in order to satisfy your equitable claim for flat.

In the expression "equitable claim for flat", 'equitable' means that standard of charges and the number of rooms that can be subsidised, in virtue of the number of family members, according to the law.

By the help of the following chart, you can easily find out if the tenement of your dreams is equitable or not:

Consequently: If you would like to move in a new flat in the capital city with your 2 children, then you can get direct subsidies for a maximum of a 4-room flat that costs HUF 24.500.000.

The ponderable number of persons in the case of a young couple living together can be augmented with a maximum of 2 children and in the case of young couples with one child, it can be augmented with one more child.(young couple: none of the spouses have turned 35, yet)



Housing allowance

Housing allowance is a not refundable subsidy what you can take after the children supported by you and children living together with you (or after other family members supported by you) for the realization of your housing plans.

You are entitled to draw on housing allowance if you do not own a flat, your claim for flat is equitable and if you wish to do one of the followings:

• building a new flat
• purchasing a new flat for the purpose of sale
• enlarging a flat (in the case of having 2 or more children construction of a roof space)
• purchasing a used flat

For enlargement of a flat or change of flat further rules apply.

Allowance can be drawn on for enlargement in the case if it means enlargement at least with one room and the date of issue of the building permit is after January 1, 2000. If you support two or more children you can draw on the allowance for construction of roof space as well.

In the case of purchasing a used flat you can apply for the allowance if you support three or more children, if you sell a flat that had already owned by you on August 1, 2001 and in place of it you purchase a flat - at least with all modern conveniences - that has a bigger basic area and one more room.

The dependents has to move in the purchased, built or enlarged flat together with you. About the entitlement for the allowance a certificate has to be asked for from the town-clerk. You can apply for allowance after the children after whom allowance had not been drawn on before.



How much money can you count on?

The amount of the available allowance depends on the number of children and the purpose of the loan. In case if you build a new flat or purchase a new flat the amount of the allowance is:

• after one child HUF 200.000,
• after two children HUF 1.200.000,
• after three children HUF 2.200.000,
• after more children HUF 200.000/child.

In case of enlargement or purchase of a used flat, the available allowance is the half of the above mentioned amounts per child. The amount of the allowance after other supported family members is HUF 30.000 per person.

The amount of the allowance cannot exceed 65% of the sum of invoices of the building costs or the purchase price. If you apply for the allowance because of the change of a used flat, the amount of allowance cannot exceed the difference between the sale price of the sold flat and the purchase price of the purchased flat.



Posterior housing allowance

If you draw on a loan for the purpose of building / purchasing a new flat and your child is born after the moving in (during the repayment period), you are entitled to draw on the allowance posteriorly. In this case, the bank enters the allowance for the reduction of your debts at the baby's birth.



Tax refund subsidy

Tax refund subsidy is a not refundable subsidy that one can draw on for the purpose of building a new flat or purchasing a new flat after he/she proves with invoices his/her expenditures. You can use tax refund subsidy if you do not own a flat, if your claim for flat is equitable and you are to build a new flat or you buy a new flat.



How much money can you count on?

The maximum amount of the available tax refund subsidy is 60% of VAT paid after the purchase price and the building costs (confirmed with invoices) but at the most HUF 400.000 per flats.

Useful information:

• The establishment of your entitlement for subsidies has to be asked for from the loan bank before the issuing of the inspection certificate in the case of building or in 120 days after the signing of the agreement for sale in the event of purchasing!
• If you wish to draw on supplementary interest subsidy, but the building costs / purchase price exceeds HUF 30 million, it is worth inquiring about the rate of the equitable claim for flat determined for your family. If , on the basis of the number of family members moving together, the price is equitable, the bank will consider this price as the upper limit while establishing your entitlement for supplementary interest subsidy.
• Housing allowance, tax refund subsidy, employer's / administrative loan/ subsidy can be count in the cash that is needed for the financing of building costs and sale price.

What to know about the tax allowance of maximum of HUF 240.000?

By means of tax allowance you can deduct the amount of money appropriated for the repayment of the housing loan from your personal income tax.

You can utilise the tax allowance in the case if you draw on the housing loan for the purpose of purchasing, building or enlarging a flat. The maximum amount of tax allowance is 40 % of your annual repayment, but maximum of HUF 240.000. The Bank gives a certification of your repayments in the calendar year so that you could draw on the allowance.


For more information call one of the following phone numbers (Mon-Thu 8 a.m.-4:30 p.m., Fri 8 a.m.-3 p.m.):

• 383-0829
• 383-0834
• 383-0836

• Udvari Ágnes - Property Manager
• Erdélyi Erika - Property Managerr
• Botos Borbála - Property Manager