Tuesday, July 23

Getting a mortgage in Poland is now more affordable: overview of the new programme

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Mortgage in Poland at 2% per annum will help solve a housing problem

In Poland, as in other European countries, the housing problem is acute. The price of property in the country is rising regularly, putting it out of the reach of many citizens. One of the ways to solve the housing problem is a mortgage in Poland, introduced in July 2023.
It is worth noting that the safe lending programme is not the first attempt by the authorities to provide citizens with affordable housing. In 2016, they introduced an initiative that included an increase in the construction of rental apartments. The idea was that these properties would be available for purchase after a while. However, the programme failed and was cancelled. The government hopes that the new project will become a more effective tool for providing Polish citizens with their own housing.
Terms and conditions of state mortgage loans:
– allows you to buy a flat or house at 2% per annum;
– is available to buyers under the age of 45 who have not previously owned a property;
– the maximum loan amount is more than 110,000 euros for a single buyer and 135,000 euros for families.
According to Prime Minister Mateusz Morawiecki, the loan scheme aims to help young people buy their first home at an affordable price.

mortgage in Poland

Features of the mortgage

The authors of the programme position it as a safe loan with a fixed interest rate. Borrowers do not risk losing their property due to an increase in monthly payments, which remain unchanged throughout the mortgage term.
Borrowers can apply for the subsidy at seven banks in Poland, including Alior, VeloBank, Pekao and others. Around 4,000 buyers have applied for a mortgage in just two months of the programme. Another advantage of the government initiative is that it is available not only to Polish citizens but also to foreigners who officially work and live in the country.
A mortgage at 2% is an optimal solution for buying a house in the context of rising interest rates. In this case, interest accrual does not depend on the inflation rate or the central bank’s interest rate increase.
Consumers have very well received the Polish government’s programme. On the first day of the programme, more than 12,000 people contacted banks for credit advice. There is no limit on the number of mortgages granted under the scheme. The authorities promise to provide loans to anyone who qualifies for the programme and can provide all the necessary documentation. The main objective is to solve the housing market problem and provide affordable housing to as many people as possible.
An essential condition for obtaining a mortgage is the creditworthiness of the applicant. For this purpose, the banks examine the income level on a case-by-case basis. In developing the scheme, the designers focused on incomes, not only in big cities. The government notes that the loan is available to people with a monthly income of 2,000 euros or more.

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