Financing a property purchase in Hungary

Three ways to finance

In practice, a foreign buyer has three options: a mortgage from a Hungarian bank, secured on the apartment; a loan from their home country, usually secured on other assets; or a cash purchase, sometimes combined with one of the two.

The choice mainly depends on three things: the buyer's residence and income (which a Hungarian bank must be able to verify), the currency of their income and savings, and the time available. Bank financing adds steps to the purchase timeline: valuation of the property, loan offer, mortgage registration, then payment of the funds to the seller.

Hungarian mortgages: what banks ask for

Each bank sets its own policy, but the basic conditions for a foreign borrower are ^[7]:

• a residence or settlement permit for non-EU nationals; without one, the application is not considered;
• a permanent address in Hungary;
• a Hungarian tax identification number;
• income the bank accepts, with the required amount depending on the loan, other commitments and personal circumstances.

A non-resident with no address or income in Hungary is therefore unlikely to obtain a standard Hungarian mortgage. Whether income earned abroad counts, and in which currency, is up to each bank, and should be checked before signing a contract with a foglaló.

A loan adds costs: property valuation, mortgage registration at the land registry (HUF 20,000), and where applicable a notarial deed and arrangement fees. These amounts are set out in the resource on costs.

MNB rules: loan-to-value and payment-to-income

The central bank (MNB) sets two caps on every housing loan made in Hungary ^[1].

Loan-to-value (HFM) limits the loan to a share of the property value:

• forint loan: 80%; 90% for a first-time buyer, meaning someone who does not own and has never owned at least 50% of a home;
• euro loan: 50%;
• loan in another currency: 35%.

The 90% limit has existed since 1 January 2024. The age limit was removed on 1 September 2025, and since 1 December 2025 first-time-buyer status is checked solely against land registry data ^[1][2]. Every co-borrower must meet the condition.

Payment-to-income (JTM) limits the share of net monthly income that can go to repayments. For forint loans of at least 5 years, it depends on income and on how long the rate is fixed (see the table). The income threshold rose from HUF 600,000 to HUF 800,000 on 1 January 2026 ^[1][2]. Limits are lower for foreign-currency loans: for loans under 5 years, the MNB table shows 25% or 30% for euro loans depending on income, against 50% or 60% for forint loans; for longer foreign-currency loans, the MNB only states that lower limits apply ^[1]. Small loans below HUF 550,000 are outside the rules ^[1].

These rules apply to Hungarian banks; a foreign bank applies those of its own country.

Interest rates in 2026 and the Otthon Start programme

The MNB base rate is 5.50%. It was cut by 0.25 points in August 2026 and held on 20 October 2026 ^[4]. According to the MNB, the average rate on market-based housing loans was 6.4% in Q2 2026, unchanged over the quarter ^[3]. The average rate paid across all new borrowers fell to 3.6% when the subsidised Otthon Start programme was launched ^[3]. The rate offered to an individual borrower depends on the bank, the fixation period, verified income and the loan amount.

Otthon Start is a 3% fixed-rate loan launched in September 2025 ^[8]. In August 2026 it accounted for 68.5% of new housing loan volume ^[10]. Its main conditions ^[8][9]:

• borrowers: Hungarian citizens, people with free-movement rights who have stayed in Hungary for more than three months, and holders of long-term residence rights;
• no ownership of a home in a built-up area in the previous 10 years (with exceptions);
• at least 2 years of continuous Hungarian social security coverage;
• loan of at most HUF 50 million; apartment worth at most HUF 100 million and priced at most HUF 1.5 million per m²;
• down payment of at least 10%, though banks may ask for more.

An EU national who lives and works in Hungary can therefore qualify; a non-resident investor cannot.

Home-country loans and cash purchases

Home-country loan. A French, German or British bank rarely takes a mortgage on property located in Hungary. The usual solutions are a loan secured on property or investments held in the home country, or a personal loan. Terms (rate, duration, security, any tax deductibility) depend on that country's law and on each bank. The advantage is staying in the currency of your income; the drawback is tying up other assets as security.

Cash purchase. This is the simplest route in Hungary: no bank valuation, no mortgage to register, and a shorter timeline. Funds are usually transferred to the lawyer's escrow account and released as the contract provides. Lawyers and banks must apply anti-money-laundering rules, so the buyer must be able to show where the funds come from (statements, the sale deed of another property, and so on). Preparing these documents in advance avoids delaying the signing.

A cash purchase can be refinanced later, but the conditions for a Hungarian loan (residence, income, MNB caps) will apply in the same way.

Euro/forint currency risk

The forint floats freely against the euro. According to the ECB, the reference rate was HUF 366.73 per euro on 23 October 2026 ^[5]. Between 16 June 2026 (349.53) and 2 October 2026 (369.18), it moved by about 5.6% in under four months ^[5][6].

For a buyer whose savings are in euros, this has a direct effect. An apartment priced at HUF 100 million cost about EUR 286,100 at the 16 June rate and about EUR 270,900 at the 2 October rate: a gap of about EUR 15,200 for the same forint price.

Points to consider:

• Between signing and payment, several weeks can pass. The buyer can convert the funds at signing, or use a forward exchange contract offered by their bank.
• Forint loan with euro income: repayments are fixed in forints, but their cost in euros changes with the rate.
• Euro loan from a Hungarian bank: the currency risk disappears for a borrower paid in euros, but the MNB caps are stricter (at most 50% of the value) ^[1].
• On resale, the price is received in forints; the result in euros depends on the rate at that time, on top of market movements.

Frequently asked questions