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Friday, December 3, 2021

A flat without own contribution – an analysis of the Expander Advisors program

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The Senate is to deal with the law that introduces the Apartment program without own contribution. The key issue may be whether the rules for setting price limits are changed. If the Sejm passes the regulations, it will be difficult to find an apartment that meets the conditions of the program in Szczecin or Krakow, we read in the Expander’s analysis.

At the beginning of October, the Sejm adopted the act on a guaranteed housing loan. This solution was announced under the Polish Deal under the name “Flat without own contribution”. The act provides that the state, through Bank Gospodarstwa Krajowego, will guarantee up to 20 percent. loan amount, but not more than 100 thousand. zloty. Apartments that can be purchased without own contribution may not exceed the agreed price limit for 1 sq m.

Loan without own contribution

“In two cities almost no chance for a loan without own contribution. On the secondary market in Krakow, the limit will be PLN 7326 per square meter, and in Szczecin, PLN 5363. In both cases, the limits will be as much as 31% lower than the average prices on the market” – results from the calculations of Jarosław Sadowski, chief analyst of Expander Advisors.

In his opinion, it seems that the multipliers included in the act will remain at the level passed by the Sejm, as the Budget and Public Finance Committee did not propose any amendments to the act. Which means that in most large cities the limits will be much lower than the prices in force recently.

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Secondary market limit – Warsaw

“The highest limits in Poland will apply in the capital. Nevertheless, it will be very difficult to find a suitable apartment on the secondary market. The limit will be PLN 8,958 per square meter, which is 28% lower than the average price in September this year (according to As a consolation, we can add that it will be much easier on the primary market. Here the limit will be PLN 9,705 per square meter, which is only 8% less than the average price. If prices do not increase significantly until January, it is in some districts that it is easy to find a suitable flat “- reads the analysis.

The difference between the limit and the average market priceExpander


Sadowski noted that “people who want to buy an apartment in Katowice will be in the opposite situation”, because there “it will be difficult to find a new apartment within the limit, and it will be quite easy on the secondary market”.

“The limit for second-hand apartments (PLN 6,436 per sq m) will be even higher (by 5%) than the average price on the market. For new apartments, the limit will be (PLN 6,972 per sq m), i.e. it will be much lower (by 21 percent) than the average prices set by developers “- listed in the analysis.

A difficult situation in Kraków and Szczecin

According to Sadowski, “the worst situation will be those planning to take advantage of the program in Szczecin or Krakow”, where “both the limit for new and used apartments will be much lower than the prices on these markets”. “In Krakow, the limit on the secondary market will be as much as 31 percent lower than the prices on the market, and on the primary market by 25 percent. In Szczecin it will be by 31 percent and 22 percent respectively.” – we read.

Expander’s analysis also mentions Łódź, “where the situation on the primary market will be the worst among the cities analyzed by us”. “The limit will be PLN 6,075 per square meter, so it will be as much as 26 percent lower than the average price in developers’ offers” – it was written.

It’s easiest in Bydgoszcz

“Among the 16 cities we surveyed, there are also a few where the limit will be so high that it will be easy to find both a new and used apartment. The best situation will be in Bydgoszcz, where the limits on both the primary and secondary market will be higher than the average price on the market. Good availability of the program on both markets will also be in Sosnowiec, Rzeszów and Częstochowa. In the former city, the limit for second-hand apartments will be as much as 23 percent higher than the prices on the market “- we read in the analysis.

Sadowski also gave some interesting facts that appeared in the act. “The guarantee of own contribution and additional payment will be available even if the applicants already have a house or flat, but not more than one property, and on the condition that they have at least two children” – he wrote.

“When they have two children, they can have an apartment or a house, but not larger than 50 square meters. With three children it can be a maximum of 75 square meters, and with four children – 90 square meters. If there are five or more children, there is no However, it should be added that in order to obtain a subsidy at the birth of a child, one should get rid of the property that was not purchased on a preferential loan “- he explained.

He added that “the age limit of the program participants has not been introduced”, and “The flat without own contribution (MBWW) is to operate for 10 years (until December 31, 2030)”.

“The act also includes a provision that for granting the guarantee (which will replace the own contribution) you will have to pay a commission of 1% of the amount covered by the guarantee. Moreover, the guarantee will not last for the entire period of repayment of the preferential loan. It will expire as soon as the repayments are made the loan will reduce the level of debt accordingly (eg below 90% of the value of the property). As long as the guarantee remains operational, such premises cannot be used for business purposes “- we learn from the analysis.

Price limits that will apply under the MBWW programExpander

Main photo source: Shutterstock

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