Who qualifies for a loan below 5% APR? Is it worth buying a home in 2025?

Who qualifies for a loan below 5% APR? Is it worth it to buy a home in 2025?

Although interest rates have been trending upwards recently, the rise in house prices has led many to wait for home loans below 5% APR.

But the favourable scheme, which will be available from spring 2025, is not for everyone. We look at who is eligible, and also take a look at what you can expect if you're thinking of buying a home in 2025.

How have interest rates been performing so far?

Home loan rates peaked at around 12-13% in autumn 2022, with a sharp rise in the BIRS (long-term reference rate). A year later, in October 2023, a voluntary interest rate cap of 8.5% was introduced.

For 2024, the government sought to alleviate costs with another measure: from 1 January, the APR on market housing loans was capped at 7.3%. Currently, in the second half of 2024, market interest rates are around 6%-7%.

You can get even better rates if you seek the help of our independent credit experts!

The 5% APR cap would therefore mean a difference of 1-2%, which is a considerable saving on a property worth $15 million or more.

Who qualifies for a home loan below 5% APR?

From April 2025, borrowing below 5% APR is possible for six months, until 31 October 2025, if the following conditions are met:

• Applicants under 35 years old who are buying their first home.
• The property must be "green", i.e. its annual energy consumption must not exceed 68 kWh/m² and it must have an energy rating of at least A+.
• The property must not exceed 60 m² and the price per square metre must not exceed 1.2 million forints.

What can homebuyers expect next year?

The government's new economic action plan will affect the property market in several areas, which could result in a recovery. One such example is the workers' loan, but the emergence of savings held in pension funds and premium government bonds could have the same effect on the market.

The introduction of a 5% interest rate cap could boost demand for new build properties in particular. Experts believe that these changes will make property more expensive by 10-15% in 2025. Of course, it is impossible to predict the future, but based on current trends, this is predicted for 2025.

If you qualify for a loan below 5% APR, it is important to act quickly. Start looking as soon as possible to find the home of your dreams in time

Look at new construction properties