The draft act on the guaranteed own contribution, announced as part of the Polish Governance, was sent to the Parliament’s Infrastructure Committees and the Public Finance Committee. According to the proposed solutions, part of the loan may be canceled in the event of the birth of another child. During the parliamentary debate, the opposition drew attention to the shortcomings of the new regulations.
It is a government bill on a guaranteed housing loan and on repayments of this loan in connection with the enlargement of the household, which is part of the Polish Deal solutions package.
Polish Order and own contribution
The aim of the project is to increase access to housing ownership by strengthening creditworthiness. The own contribution of the borrowers participating in the program will be guaranteed by the State Treasury.
A loan without own contribution will be a housing mortgage that meets the conditions set out in the Act and is granted by banks joining the program on the basis of an agreement concluded with Bank Gospodarstwa Krajowego.
The state, through BGK, will guarantee up to 20 percent. loan amount, but not more than 100 thousand. zloty. BGK will pay off a part of the guaranteed housing loan on a one-off basis in connection with the birth of a child. It will be the so-called family repayment, which will amount to PLN 20 thousand PLN in the case of increasing the household with a second child and 60 thousand. PLN if the household is enlarged by a third or subsequent child.
The loan will be granted for a minimum period of 15 years. in Polish currency. The draft also includes mechanisms limiting the risk of stimulating housing price growth. This will be the introduction of a maximum price limit (including the construction contribution) per 1 sq m of usable floor space of the financed apartment. The second possible mechanism will be an authorization for the Council of Ministers to lower, in the regulation, the amount of the coefficients influencing the statutory price limits.
Guaranteed own contribution. Piotr Uściński: we hope that children will be born
As Deputy Minister of Development Piotr Uściński said in the Sejm on Friday, the cost of the program is estimated at PLN 12 billion by 2030.
– The vast majority of these costs will be family repayments. We hope that children will be born. The guarantee costs will also be there, but remember that in this act we also provide for a commission. People who will use the guarantee will pay 1 percent. commission and this money will be used to service these guarantees – explained the deputy minister.
He added that, according to the ministry’s estimates, during the first years of operation of this solution, about 45 thousand people will benefit from the loan. families per year, and in the following years 70 thousand. families each year.
– Let’s hope that Poles will use as much as possible, especially from these family repayments, especially since this program will affect the fertility rate of families that will take this loan – emphasized the deputy minister.
Own contribution in the Polish Lada. The opposition criticizes the solution
– The entire program can be called a poorer version of the Apartment for the Young. Already during “MdM”, young Poles received funding from the state. Let us remember that this is the program of the PO and PSL – said Jacek Tomczak from KO. There were also voices that the new form of support would adversely affect the real estate market.
– You are introducing a dot to dot solution very similar to Hungary, Hungary introduced such a solution in 2013 and 2015. What effect? The increase in housing prices is the highest in all of Europe – noted Jakub Kulesza from the Confederation. In turn, Cezary Grabarczyk said that it should be checked whether the situation on the housing market will not worsen, because, according to him, this proposal does not appear on time. – said Cezary Grabarczyk from KO.
The Polish Deal is a new socio-economic program for the post-pandemic period. Its foundations are 7 percent. GDP for health; tax reduction for 18 million Poles (including increasing the tax-free amount to PLN 30 thousand and the tax threshold from PLN 85.5 thousand to PLN 120 thousand); investments that will generate 500 thousand. new jobs; apartments without own contribution and house up to 70 sqm. no formalities, and a pension up to PLN 2,500 without tax.
Main photo source: Shutterstock