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A safe loan with a subsidy to installments and a housing bonus from the state budget. Commented by Bartosz Turek

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This time, the government program has grounds to be a success, assessed HREIT expert Bartosz Turek in an analysis published on Tuesday. He calculated that up to four million Poles can reach for a “safe loan” with state subsidies for installments. According to the expert, a preferential loan should also cost less than renting an apartment.

Last week, the president signed the act on state aid in saving for housing purposes, which introduces a “safe loan” with a subsidy to installments and a housing bonus from the state budget. The new solution will come into effect from Monday, July 3 this year.

The loan should also cost less than renting an apartment

According to the HREIT analyst, this loan is to be much cheaper than a standard mortgage. He calculated that even if the interest rate is just over 3 percent, it will still be much less than the banks offer. He added that a preferential loan should also cost less than renting an apartment. His estimates show that up to 4 million Poles may meet the conditions of “safe credit”. He assessed that “this time the government program has grounds to be a success.” He reminded that according to the rules, married couples and single parents will be able to apply for up to PLN 600,000. such a preferential loan, while the others – by half a million. He added that you will be able to add your cash to this money, but not more than 200,000. zlotys. “The amount is considerable, because assuming the maximum allowed budget, in relatively expensive Warsaw you will be able to choose from about 2/3 of the apartments currently put up for sale” – he wrote.

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He made a calculation, which shows that with 10 percent. own contribution and taking out half a million zlotys for a 30-year loan with an interest rate of 8.2 percent, the equal installment under the standard bank offer would be over 3.7 thousand. PLN per month, and the interest we paid back to the bank (assuming that the terms of the loan have not changed) would amount to as much as PLN 846,000. However – as he calculated – with a “secure loan”, the first installment will amount to approx. PLN 2.7 thousand. zloty. In addition, as he emphasized, the installment should gradually decrease to less than 2.3 thousand over 10 years. zloty. Turek reminded that subsidies to loans can be combined with a system of credit guarantees known as “loans without own contribution”. “To sum up, in the extreme case, the first apartment will be available for purchase without down payment, with lower transaction costs, with a subsidy to installments and a bonus to creditworthiness compared to the standard mortgage offer” – he pointed out.

There will be no shortage of people willing to take a cheaper loan

Turek estimated that among the potential recipients of the “safe loan” there are about three million adults living with their parents and one million tenants, i.e. about four million Poles in the country. “Of course, only a small percentage of these people can decide in the coming years to move out on their own with the help of a preferential loan. It is certain, however, that there will be no shortage of people willing to take a cheaper loan” – he concluded. According to the act, “safe credit” with a periodically fixed interest rate a person up to the age of 45 will be able to enlist; if the loan is granted to both persons running the household, the age condition will have to be met by at least one of them. The loan may be granted for the first flat – persons belonging to the borrower’s household will not be able to have, on the day of granting the loan or in the past, a flat, a house or a cooperative right to a flat or a house. The subsidy to the installments will be due for 10 years, and the loan will be repaid in the formula of fixed capital installments (decreasing capital and interest installments). During the period of application of subsidies, the loan interest rate, according to the explanations on the website of the Ministry of Development and Technology, will amount to 2 percent for the borrower. plus a margin, commission and other bank charges (if any). “Safe loans” will be granted by banks that will conclude an agreement with BGK in this regard. The Act introduces a special savings account. Regular payments (at least 11 payments per year in the amount of at least PLN 500) will guarantee an additional housing bonus from the state budget. The bonus will be equal to the annual index inflation or the price change index for 1 square meter of usable floor space of a residential building. Each year, an indicator more favorable for the saver will be selected. Savings will additionally bear interest in accordance with the bank’s offer, while interest will be exempt from the so-called beam tax.

Read also: A new credit program. What will be the amount available?

Main photo source: Shutterstock

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