How the government changed the CSOK
February 29th, 2016

Criteria about paying back the allowances and loans in the CSOK program did not change, however the 30 million Forints upper value limit of buying or building new apartments was abolished.

The Hungarian government is not changing the conditions of applying for the CSOK as in applicants are still going to need social security coverage and be employed to get into the program. Other criteria however were broadened so the CSOK could reach more families.

The price of 30 million Forints of for those who are applying for subsided loans and want to buy or build new apartments is also to be scrapped.

Ágnes Hornung, state secretary of the National Economy Ministry said that the new set of conditions will guarantee that the loans will be paid back properly. Banks will examine conditions for everyone who applies to prevent an event similar to the foreign currency loan bubble.

The government also tried to minimize abuse. They would like to direct the positive effects of the reduced 5% VAT at individuals and not real estate investors. With the new conditions demand significantly increased and a so called speculative price emerged on the market. Officials expect supply to align to the demand and the speculative prices to level off on the long run, so the effects of the VAT reduction will affect the sale of new homes.

(Source: http://www.portfolio.hu/finanszirozas/hitel/maris_valtozik_a_csok_ime_a_reszletek.4.225779.html)