Polish government wants to adopt draft #naStart housing loan bill in Q2

The Council of Ministers plans to adopt the #naStart housing loan bill in Q2 this year, according to information in the Council of Ministers' list of legislative and programme work. The new credit will replace, among others, the '2% Safe Credit' programme.

The new #naStart housing loan will replace, among other things, the Safe Credit 2% programme. It will be financial support in the form of subsidised loan instalments, with higher assistance targeted in particular at families with children. The possibility for Bank Gospodarstwa Krajowego to guarantee the repayment of part of the loan will also be retained, reported Government Information Centre (CIR).

The amount of the credit instalment subsidy will depend on the number of children in the household. Households without children will, thanks to the subsidies, receive a preferential loan interest rate of 1.5%, while for families with at least three children, the loan interest rate will be 0%, it was announced.

In the years 2024-2025, the government plans to provide up to 100,000 #naStart housing loans, assuming that the average amount of the loan in each year of the programme's implementation, will amount to PLN 410,000, CIR reported.

The new #naStart housing loan programme will also be extended to include a housing loan that is a consumer credit taken to finance a tenant's participation in the construction costs of a dwelling under a social housing initiative (SIM) or social housing society (TBS) project or for a housing contribution in a housing cooperative, the list of legislative and programme work states.

In addition, the possibility of taking out a residential mortgage loan with subsidised instalments will also be given to families with at least three children if the dwelling or single-family house being built for housing improvement is not the borrower's first dwelling.

The proposed solutions of the new programme:

- a mortgage loan for the first own dwelling (in the case of families with at least 3 children also for the purchase or construction of a dwelling without the need to fulfil this condition) will be granted in the Polish currency, for a period of at least 15 years, with a fixed interest rate set for a period of 60 months (in the case of the application of subsidised instalments during the period of application of the subsidised interest rate as a periodically fixed interest rate);

- in the case of a loan granted under the programme as a consumer credit to finance a participation or housing contribution, the loan repayment period will not be shorter than 5 years and no longer than 15 years;

- a possibility to obtain a guarantee for repayment of a part of the credit granted by BGK (up to the total amount of the borrower's own contribution and the guaranteed part of the mortgage credit no higher than PLN 200,000), also in relation to a housing credit which is a consumer credit taken in order to finance a housing contribution or participation in the costs of construction of premises in social housing resources;

- the amount of the instalment subsidy will depend on the number of children in the household - from 1.5% for households with no children to 0% for households with three or more children;

- a rate of 0% for a housing participation or contribution;

- with a view to the objective of supporting the acquisition of a first home, an age limit of 35 years for singles will be introduced. In other cases, no age limit is introduced.

- In order to ensure better targeting of the #naStart housing loan programme, which is largely lacking in secure 2% loans, the bill will set out additional arrangements and eligibility criteria for support:

(a) the amount of the borrower's household income that entitles the borrower to take out a residential mortgage loan with instalment subsidies,

(b) the maximum amount of the part of the principal of the loan taken out on which the housing loan instalment subsidies will be calculated;

- in the event that the dwelling or single-family house to which the housing loan relates is located on the territory of a voivodeship or a city for which the most recently announced by the voivode conversion index of the cost of reconstructing 1 m2 of the usable area of residential buildings significantly exceeds the most recently announced by the President of the Central Statistical Office (GUS) for the whole country price index of 1 m2 of the usable area of residential buildings, the quantitative parameters of the limit of gross income of a household and of the part of the loan principal determining the maximum basis for calculating the instalment subsidies will be increased". - listed.

The body responsible for drafting the project is the Ministry of Development and Technology; planned date of adoption of the project by the Council of Ministers: Q2 2024, it concluded.

Source: CIR and ISBnews