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Hungary – Property Financing

Mortgages for Foreign Nationals in Hungary

Hungary is a country with a rich history and a growing real estate market. For foreign nationals interested in purchasing property in Hungary, one important consideration is obtaining a mortgage. In this article, we will explore the availability of mortgages for foreign nationals, the local lenders in Hungary, deposit requirements, and the responsibilities of new property owners regarding outstanding debts.

Availability of Mortgages for Foreign Nationals

Foreign nationals, including non-residents, are generally eligible to apply for mortgages in Hungary. However, the availability of mortgages may vary depending on your financial situation, credit history, and the policies of local lenders. To secure a mortgage in Hungary, you will need to meet certain criteria:

  • A stable source of income: Lenders will assess your ability to repay the loan, so having a consistent income source is crucial.
  • Good credit history: A positive credit history demonstrates your financial responsibility and increases your chances of mortgage approval.
  • Residence and identification documents: You will need to provide proof of identity and, in some cases, proof of residence in your home country.

It’s important to note that Hungary is part of the European Union, and this can facilitate property purchases and mortgage applications for EU citizens. However, even if you are not an EU citizen, you can still explore mortgage options in Hungary.

Local Lenders Providing Mortgages

Hungary has a well-developed banking sector with both local and international banks offering mortgage services. When considering a mortgage in Hungary, you can explore options from reputable lenders such as:

These banks offer a variety of mortgage products with different terms and interest rates. It’s advisable to contact these lenders directly or work with a mortgage broker who can assist you in finding the most suitable mortgage option for your needs.

Deposit Requirements for Property Purchases

Deposit requirements for property purchases in Hungary can vary based on several factors, including the property’s value, your financial profile, and the lender’s policies. As a general guideline, you should be prepared to provide a deposit of at least 20% to 30% of the property’s purchase price.


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It’s worth noting that the Hungarian government has introduced measures to make it more attractive for families with children to purchase property. These measures include lower property transfer taxes for families and additional subsidies. Depending on your situation and the property you intend to buy, these incentives may affect your deposit requirements.

Additionally, some lenders may offer higher loan-to-value ratios for certain borrowers, allowing for a lower deposit requirement if you meet specific criteria and have a strong financial standing. Discussing your options with a mortgage specialist or broker is advisable to understand the deposit requirements tailored to your circumstances.

Responsibility for Outstanding Debts

When purchasing property in Hungary, both buyers and sellers have specific responsibilities to ensure a smooth and legally compliant transfer of ownership. Property transactions in Hungary are regulated to protect the interests of all parties involved.

As a buyer, it’s essential to engage the services of a qualified solicitor or legal representative who specializes in Hungarian property transactions. They will perform due diligence on the property, verify its legal status, and ensure there are no outstanding debts, encumbrances, or legal issues associated with it.

The seller is responsible for settling any outstanding debts or obligations related to the property before the sale is finalized. This includes clearing any mortgages, property taxes, utility bills, and other outstanding financial obligations associated with the property. Your legal representative will ensure that all these obligations are met before the property is transferred to your name.

Once the sale is completed, you, as the new property owner, will be responsible for ongoing property taxes, utility bills, and other regular expenses associated with homeownership in Hungary.

In conclusion, Hungary offers mortgages to foreign nationals interested in investing in its real estate market. A range of local and international banks provides mortgage options, and deposit requirements can vary. Conducting thorough due diligence and working with qualified legal professionals will help ensure a successful and legally sound property purchase in Hungary.

For more information on mortgages and property purchase in Hungary, you can visit the official websites of OTP Bank, Raiffeisen Bank, K&H Bank, and CIB Bank.


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