Defying expectations: only a few apply for CSOKApril 11th, 2016
According to the opinion of OTP’s experts, approximately 40 000 are qualified for the new home allowance program – CSOK –, of which they expected around 50% to carry their transactions at their bank. Information however shows that the number of actual applicants and mere enquirers differ greatly – as reported by Hungarian news outlet Magyar Idők.
By the end of February, only 50 applicants handed in their applications at OTP for three children (a 10 million HUF benefit), approximately 30 applied for a loan of the same amount, and 40 for a tax refund. On the other hand, in the first two months of 2016, more than 14 000 people resorted to the bank asking for information and advice regarding the program, with a possible intention to apply for CSOK. A quarter of these individuals specifically made inquiries about the 10 + 10 million HUF construction.
FHB Bank commented that the number of successful applications is much lower than that of enquirers. This is mostly due to the fact that the majority of them wanted to gather information about the benefit for families with three children which can be granted in the case of buying new properties, but many were waiting for the new decrees to take effect. The applications for the benefits regarding newly constructed estates is understandably being delay because of the fact that the construction might take up a longer amount of time. The level of inquiry is demonstrated by the fact that FHB’s own application (which checks if one’s qualified to apply) have been already used by more than 100 000. A third of FHB Bank’s current applicants decided to have another child or several children, as the majority of their clients have already had two.
More than a third of the already approved applications came from Budapest or Pest county. 85% of the applicants requested the benefits for the purchase of previously inhabited homes, the majority also calculating with a need to also take out a loan. FHB expects similar ratios in the future, especially knowing the fact that there are still just a few new flats and houses that pass the requirements and rules of CSOK.
According to UniCredit Bank’s statement, they have only been receiving applications conforming to the new set of regulations since the beginning of February. The bank has reported that mostly those rely on the benefit who already have three children or more. They also added that more than 80% of the previous applications were issued with an aim of buying previously inhabited estates, and these people mostly sought new homes in either the capital city or its agglomeration, or in chief cities and neighbouring towns.
Erste Bank has only issued a short statement, explaining that the changes in respective laws and regulations make it necessary to inform and notify clients again. The bank emphasised that CSOK can be still used as own funds.
Budapest Bank has also experienced an intense inquiry since the first days of the year. They also warn clients that because of the funding of the documents needed for the application and their period of validity, it is important that people should only start to acquire certificates after and not before an appointment and agreement made with the consultants.