Moving to Hungary can be a big step for any expat. After the initial immigration process, you need a viable plan as far as your accommodation goes. Since the process of purchasing property in Hungary is relatively simple, it makes sense to invest and buy your own property. But how do you go about this process and what are the steps you will need to follow in order to finance a property purchase in Hungary?
Our expert team of immigration attorneys are here to help you better understand the process, and its requirements.
What kind of bank loans are available for property purchase in Hungary?
If you are purchasing property in Hungary, you will have the option of taking out a loan or mortgage in Euros, Swiss Francs, or Hungarian Forints. Generally speaking, loans and mortgages are mostly available in Hungarian Forints.
What amount can I apply for on my loan?
Expats might be able to get mortgages of between 50% and 70% of the purchase price of the property they are interested in buying if they meet all the bank’s requirements for loans.
Can I take up a loan with Hungarian financial institutions?
You can take up a loan with Hungarian financial institutions, albeit it might be much easier to get a mortgage or loan from your country of origin. By getting a loan abroad, you might be able to negotiate better conditions (such as reduced interest rates and reduced commissions and charges).
In Hungary, there are only a few service providers that cater to the needs of foreigners applying for home loans and mortgages, with the main service provider being CIB Bank, catering to expats in need of assistance to finance a property purchase in Hungary.
Although expatriates are not eligible for state support in Hungary, there is always the option of property leasing, which ensures that foreigners can apply for and get loans.
How do Hungarian banks extend loans to foreigners?
Unlike most banks in an expatriate’s home country, the banks in Hungary do not take monthly salaries or business incomes into account when you make an application for a mortgage or a loan. The property you intend on purchasing has a set value as far as the mortgage or loan is concerned. Mortgage credit loans usually see loans of up to 60% of the property value being extended.
What kind of properties are financed in Hungary?
Banks and financial institutions can only offer mortgages and loans for a property purchase when the application is made with the intent of:
- Residential purchases
- Investment purchases
- Refurbishment purchases
- Re-financing of unencumbered properties
- Commercial use of properties
Over what period of time can I finance a property purchase in Hungary?
If you are looking to finance a property purchase in Hungary, you will have the opportunity of financing it for a period of between one and thirty-five years.
If you need more information about the purchase of property in Hungary or the process of getting a property purchase financed, be sure to get in touch with our team of experts today!
My name is (details redacted for privacy), i am a 24 years old Brazilian with Hungarian roots, residing In Italy( awaiting for my second citizenship as a Italian to be finished) and i am negotiating a historical Kuria near Budapest to buy for around 22.ooo.ooo forints plus the renovation costs (below the market price) , to live there and start a hotel and cultural events venue. which in the future will also be for many purposes including courses, a horse sanctuary and many ecological and artistic projects.
I have income and family properties in Brazil which i could easily prove trough my Brazilian bank and many documents.
So I would like to know what are the conditions to get a loan/ mortgage to buy the property or to renovate it and maybe open a bank account in your bank. I Already have a part of the money, but i prefer to get a loan in Hungary other then selling properties in Brazil or getting a loan there, where the conditions are not so good.
Looking forward for your reply,
(details redacted for privacy)
Do the banks in Hungary finance non resident investors for home loans ?