Pursuant to the Act of 26 May 2023. on State Aid in Saving for Housing Purposes (Journal of Laws 2023 item 1114) (hereinafter: the ‘Act’), the legislator has prepared a mortgage loan subsidy programme in the form of Safe Mortgage.
The key prerequisites of the mortgage loan programme:
(i) lack of legal title to residential premises, detached house or co-operative real estate right,
(ii) an age limit of 45 years at the date of application for financial support,
(iii) no requirement for a minimum amount of own contribution,
(iv) a minimum loan amount of PLN 100,000.00 and a maximum loan amount of PLN 500,000.00 subject to a different monetary amount in the case of, for example, a married couple applying for financial support,
(v) no limit on the price per square metre of the property.
The institution of Safe Mortgage provides many benefits, however, one must not forget the accompanying obligations or restrictions arising from the use of the programme:
(i) the prohibition to sell or rent the property covered by the Safe Mortgage for a period of 10 years,
(ii) maximum amount of own contribution of PLN 200,000.00,
(iii) home loan instalment subsidy shall be available for a period of 10 years,
(iv) there is a possibility of overpayment of the loan without losing the instalment subsidy under the terms of the Act or any other source of law.
*Comparison of interest rates at the time of editing the issue: the current level of interest rates is classified at around 6.75% and the Safe Mortgage is offered at 2%.
** Interested parties without own contribution are eligible for the Safe Mortgage programme in conjunction with the ‘Housing without contribution’ programme.
3 October 2023
