The community also provides priority support to families during the coronavirus epidemic. Another element is added to the home creation program; from February 1, a home renovation loan will be offered to those who do not have enough self-sufficiency to be able to benefit from home renovation support, the minister without portfolio for families announced on his Facebook page on Monday.
Image source: koronavirus.gov.hu
Katalin Novák reminded that from January 1, those who renovate their homes can receive support: they can receive up to HUF 3 million in support towards the renovation costs.
However, those who do not have enough money to finance the renovation and thus fall short of this subsidy have the option of a home renovation loan, he said.
The home renovation loan is a loan of up to HUF 6 million, with a maximum term of 10 years and a maximum interest rate of 3 percent, which will be available at bank branches, he explained.
Thus, according to the Minister without Portfolio for Families, the new type of loan is for those who now do not have the money to advance construction, renovation, modernization work.
Katalin Novák said that when applying for the loan, the bank will check the eligibility for the support, and if the applicant meets it, she will receive the home renovation loan. He recalled that this required the upbringing of at least one child in a joint household, as well as an employment relationship that made him or her eligible for the allowance.
He stated that after taking out the loan – from 1 March – the applicant has one year to submit his grant application to the Hungarian State Treasury (MÁK) on the basis of the collected invoices. He added that the MÁK will also examine whether the applicant is entitled to the support at that moment.
Those who meet the conditions will also receive the subsidy, which will cover 50 percent of the paid costs, up to a maximum of HUF 3 million, which can be half a salary and half a material cost, he said. He added that this means that in the case of the maximum loan of 6 million, the loan will be reduced by HUF 3 million, and the repayment of this will mean a monthly installment of about HUF 30,000 for ten years.
The minister without portfolio for families, he said, is confident that the new loan will provide an opportunity for even more to renovate their homes.
The aim of the government’s home-building program is for Hungarian families to be able to wait and raise their children in safer and better conditions, Katalin Novák emphasized.