UniCredit is set to join the fierce competition for Hungary's first-time homebuyers, launching sub-3% interest rate offers for the state-supported Otthon Start mortgage program starting August 10.
The move signals an escalation in pricing pressure among lenders as they vie for market share in the country's subsidized housing finance sector.
The Italian banking group's entry into the low-rate segment adds another major player to a market already seeing aggressive discounting.
By offering rates below the 3% threshold, UniCredit aims to capture a larger slice of the demand for government-backed loans, which remain a critical tool for accessing the Hungarian property market amid broader economic headwinds.
This development comes as competition among Hungarian banks for retail lending has intensified.
The Otthon Start program, designed to support first-time buyers, has become a focal point for this rivalry, with institutions increasingly using subsidized rates as a key differentiator.