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2026-06-11 08:59:52 · tojuri@vixio.com
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TITLE: Hungarian National Bank Issues Guidance on State-Subsidised Housing Loan Disclosure Requirements BODY: On June 3, 2026, the Hungarian National Bank (MNB) issued a management circular addressing disclosure requirements for state-subsidised housing loans secured by apartment building property rights. The circular, issued by the MNB's deputy governor responsible for financial organisation supervision and consumer protection, targets credit institutions providing state-subsidised mortgage loans for home creation purposes under the Act on Credit Institutions and Financial Undertakings (Act CCXXXVII of 2013). The circular addresses a specific risk: when state-subsidised mortgage loans are secured by apartment building property rights, the interest subsidy terminates if construction work is not completed and certified within statutory deadlines, regardless of whether the borrower is at fault. The MNB expects credit institutions to provide clear, verifiable, and understandable information to consumers before loan agreement execution. This disclosure must alert borrowers that if construction work is not properly certified within required timeframes—even when non-completion results from the builder's failure rather than the borrower's fault—the interest subsidy will cease, resulting in higher repayment amounts and requiring repayment of already-received subsidies with accrued interest from the date of receipt. The circular applies to credit institutions offering state-subsidised home creation loans under two government programmes: the Home Start programme (providing fixed three percent loans under Government Decree 227/2025) and the CSOK Plus programme (under Government Decree 518/2023). The MNB expects affected credit institutions to comply with these disclosure expectations promptly. The circular, which is a non-binding supervisory regulatory instrument, expresses requirements derived from applicable legislation, MNB enforcement practices, and market standards. The MNB will send the circular directly to affected credit institution leaders and the Hungarian Banking Association, and will publish it on its website.
  • Scraped:2026-06-11 08:59:52
  • Created:2026-06-11 08:59:52
  • By:tojuri@vixio.com (9)