23 March 2023 the Government's draft State Aid Act in Saving for Housing (print no. 3096)[1]. According to the Communication[2] the aim of the project is to improve the state of meeting housing needs of households without housing.
The objective would be achieved by:
- support for systematic savings for housing related to acquisition first the owner's own dwelling or single-family home to meet the need for a spare housing,
- increase the ability to borrow and pay mortgages on first housing, during a period of high macroeconomic volatility, including the persistence of high interest rates.
The draft provides in principle for the entry into force of the Act on 23 July 2023
To whom the program is addressed
Secure loan 2% is a project involving the granting of mortgage payments. According to the project,
secure credit 2% will be able to apply to borrowers operating a household in the territory of the Republic of Poland or outside the territory of the Republic of Poland. Of which second (a) the holder of a Polish nationality or (b) in the absence of a Polish citizenship, to run a household together with the person holding such citizenship, where the credit is granted jointly with that person.
The programme is generally targeted at those who have not completed 45 years and have no ownership or cooperative right regarding a dwelling or a single-family house. In accordance with the current wording of the draft, the condition that ownership or cooperative rights are not to be held will also be deemed to be fulfilled if the borrower and the person with whom he/she jointly runs the household have a combined ownership or cooperative right to one dwelling or single-family house:
- with a share not higher than 50% and acquired by inheritance if they do not reside in that premises or house from at least 12 months or
- excluded from use under the decision of the building supervisor referred to in Article 68 Act of 7 July 1994 – Construction law, issued:
(a) in connection with a construction disaster, the effects of floods, wind, landslides or the action of another element, or
(b) at least 12 months before the date of application for family housing credit.
Conditions of payment
By Sound Article 9a, to be added to the Act of 1 October 2021 of a family housing credit, upper limit of the amount of credit covered by the safe credit scheme 2% To be carried out 500,000 PLN.
Where the borrower operates a household together with the spouse, or where the borrower's household includes at least one child this amount will increase to 600,000 PLN. The maximum amount of the borrower’s own contribution is currently set at 200,000 PLN.
This means that the property price cannot exceed 700,000 PLN for single people and 800,000 PLN for marriages or families with children.
In the current version, the programme is intended to cover 120 first payment instalments. Amount of aid for a secure loan instalment 2% calculate the lending bank in accordance with the following formula:
where each symbol means:
- D — amount of aid,
- Ks — safe lending capital 2% outstanding,
W — the date on which the safe lending interest rate was established 2% average quarterly interest rate.
After the payment of security credit instalments has expired 2%, The repayment of the loan is essentially to be made in equal instalments. The exception to this rule will be when the borrower decides to apply to maintain the existing repayment.
Due to the early stage of legislative work, we are following the changes made to the bill.
[1] The project content is available at: https://www.sejm.gov.pl/Sejm9.nsf/PrzebiegProc.xsp?nr=3096
[2] Cf: https://www.gov.pl/web/premier/projekt-ustawy-o-pomocy-panstwa-w-oszczedzaniu-na-cele-mieszkaniowe2