About the program "Apartment to start" ("Mieszkanie na start") in Poland

"Apartment for start" is a program that is designed to respond to the ever-changing needs of the real estate market. Will it be possible to do this this time? The previous program "Safe Loan 2%", which, in theory, was supposed to help in the acquisition of their own real estate, led to great chaos. The lack of price restrictions per square meter of real estate led to a situation where apartments meeting the program criteria were offered at extremely high prices. In large cities, average prices per square meter currently fluctuate around 15 thousand zlotys , which is a significant increase over previous prices.

"Apartment for start" is a program that is designed to respond to the ever-changing needs of the real estate market. Will it be possible to do this this time? The previous program "Safe Loan 2%", which, in theory, was supposed to help in the acquisition of their own real estate, led to great chaos. The lack of price restrictions per square meter of real estate led to a situation where apartments meeting the program criteria were offered at extremely high prices. In large cities, average prices per square meter currently fluctuate around 15 thousand zlotys , which is a significant increase over previous prices.

Safe Loan 2% was expected to support 50 thousand loan applications in 2023 and 2024, however, demand exceeded expectations, and, despite high prices, about 59.6 thousand loans were provided in 2023. Meanwhile, potential borrowers had to face long waiting times for application consideration, sometimes even 2 months. However, since the pool of expected loans was exhausted, the Ministry of Development and Technology faced the need to create a new formula for supporting borrowers. The modern market first of all needs stability and transparency. Any sharp recovery or stagnation supply and demand carry potential risks and negative consequences for both borrowers and the real estate industry. Does the “Apartment to Start” program have a chance to become a tool for thoughtful support?

The program is expected to begin in the second half of 2024

Consultations on the “Apartment to start” program began in early January of this year. Since the initiative is addressed to Polish families planning to buy a house or apartment, the Ministry of Development and Technology will also take into account public opinion when forming the program. All this is to ensure that the principles of the program meet the real needs of the people. The Ministry also emphasizes that since the proposed solutions will not solve all the problems of borrowers, the department intends to develop additional support tools.

According to the department, the program should begin in the second half of 2024, and 0.5 billion zlotys have been allocated for its implementation this year by the budget project. According to the Ministry of Development and Technology, about 50 thousand borrowers can benefit from support.

For whom and under what conditions will there be an “Apartment to Start”

According to preliminary information, the following will be able to take advantage of the loan under the “Apartment to start” program:

* singles under 35 years old;

* persons with at least one child (without limiting the age of the child);

* persons who have not yet owned their own apartment or private house (with the exception of holders of a share not exceeding 50% in the ownership of an apartment or in the right of cooperative ownership of premises received by inheritance or gift);

* people who own one apartment and have at least three children in the family.

In addition, subsidies and installment plans are planned for loans taken out until the end of 2025. These subsidies will be valid for 10 years and will vary depending on household size. Subsidies will reduce the interest rate on the loan to:

* 1.5% for households of one and two people;;

* 1% for a family of three;

* 0.5% for a family of four;

* 0% interest for a family of five or more people, as well as for loans issued in the form of a consumer loan to cover the cost of participation in SIM/TBS or housing contribution in a housing cooperative.

A loan under the program can be used to purchase an apartment or house (in the secondary or primary market), build an individual home, or for a housing contribution to a cooperative or participation in a Social Building Society (TBS)/Social Housing Investment (SIM).

What amounts can I claim?

The "Apartment to start" program does not impose restrictions on the loan amount. However, subsidies will only be provided up to a certain amount of loan capital:

* up to 200,000 zlotys - for singles,

* up to PLN 400,000 - for households consisting of two people,

* up to PLN 450,000 - for households consisting of three people,

* up to PLN 500,000 - for households consisting of four people,

* up to PLN 600,000 - for households consisting of five people,

* +100,000 zlotys for each additional person in the family.

The principle is that government subsidies only cover the maximum amount, which can be illustrated by the example of a family of three who takes out a loan of PLN 500,000. In this case, subsidies will only apply to the maximum amount, i.e. PLN 450,000.

However, it is worth noting that these limits may be increased if you purchase an apartment in one of the 18 largest cities in Poland.

Source: nieruchomosci.infor.pl