What is a safe mortgage and who can apply for it?
FIRST APARTMENT PROJECT
In mid-2022, the Minister of Development and Technology announced that from 2023 he would start implementing a new project, entitled First Apartment. According to the assumptions, it will be implemented in two variants. One of the pillars is preferential mortgage loans, while the other is savings accounts where you can collect funds for your own M. The advantage of this solution is that the funds will not be charged with the so-called the Belka tax, and the saver gains the opportunity to obtain a bonus from the state budget.
SECURE LOAN AND ITS ASSUMPTIONS
A safe 2% loan is one of the foundations of the First Apartment project. It was created for young Poles and Polish women who, due to numerous factors, have problems with obtaining a loan from a commercial bank. The difficult economic situation, rising inflation and interest rates stand in the way of many people realizing the dream of their own apartment. In this situation, young people are mainly forced to rent, which also requires considerable financial outlays.
The safe credit program assumes the possibility of obtaining a mortgage loan for the purchase of an apartment on preferential terms. Banks assess potential borrowers very restrictively, which, combined with rising real estate prices, inflation and a difficult economic situation, means that fewer and fewer people can afford to buy a flat. The developed safe credit 2% program is a response to worrying trends.
The solutions provided as part of the safe loan are addressed to young people who have never owned their own residential property before.
projekt pierwsze mieszkanie
ASSUMPTIONS OF THE SAFE CREDIT 2% PROGRAM
The most important assumption of the program is a very favorable interest rate of 2%, but note – such a low level applies to part of the loan period – 10 years. Throughout this period, the difference between the market interest rate and the assumed 2% will be covered by government subsidies. This difference will be transferred to the banks as a surcharge to the capital and interest installments. Therefore, the interest on the part of the borrower is not higher than 2% of the fixed interest rate, plus the bank’s margin.
Importantly, in the first decade after taking out the loan, the installments are decreasing according to the contract. This mechanism allows the capital to be repaid faster. After the preferential period of 10 years, the financing conditions change, the borrower assumes the interest rate at the market level. The form of installments also changes – from decreasing to equal.
LOAN AMOUNT
According to the draft, both families and persons running their own households can apply for a loan on preferential terms, with the legislator specifying the maximum loan amount. For singles, it is no more than 500,000. PLN, while for married couples and families with at least 1 child, this amount is not higher than PLN 600,000.
The funds obtained under the loan may be used only for housing purposes. However, there is no restriction as to the type of market – a house or flat can be purchased both on the primary and secondary market. It is allowed to carry out construction, including spending funds for the purchase of a building plot.
OWN CONTRIBUTION
The rules for granting loans under the Safe Credit 2% project are the same as in the case of commercial offers. You will need your own contribution to get help. In accordance with the applicable recommendations of the Polish Financial Supervision Authority, the own contribution should not be lower than 20% of the value of the property purchased or 10% if additional collateral is applied. It is worth noting that, according to the current assumptions, the lack of own contribution does not definitively rule out the possibility of applying for a 2% loan. All thanks to the possibility of partial connection with another project, which is a flat without own contribution.
WHO CAN APPLY FOR A SAFE 2% LOAN?
According to the assumptions, the program is addressed to young people, i.e. those who will not be more than 45 years old on the date of granting the loan. An additional condition is the lack of a residential property (at the time of applying for a loan, as well as in the past). This restriction applies to both independent ownership and co-ownership shares in the said real estate. This also applies to cooperative rights.
In the case of singles, the matter is obvious, while in the case of married couples or parents of at least 1 child, the indicated conditions must be met by at least one of the spouses or parents.
The loan may be granted only to those borrowers whose creditworthiness to incur liabilities has been positively assessed by the bank granting the loan.
SECURE 2% LOAN – WHEN WILL THE PROJECT COME INTO FORCE?
According to the announcements made in 2022, the program will be implemented from 2023. The plan assumes that it will be possible to take advantage of it from July 1, but in practice we can talk about the start date.