The Government Legislation Centre today 08.04.2024, presented a bill that introduces a new real estate financing scheme entitled ‘Mieszkanie na Start’. This scheme is the successor to the ‘Bezpieczny kredyt 2%’ and brings a number of changes to improve access to the property market.

Types of loans available

Under the new programme, mortgages can be used for a variety of purposes, such as the construction of a single-family house, the acquisition of a plot of land or the purchase of a dwelling. A distinctive feature is the exclusion from the list of loan objects of the acquisition of a right under the assignment of a reservation or development contract, aimed at limiting speculation in the market.

Consumer loans, on the other hand, are a novelty compared to the previous programme. They cover the cost of the participation or housing contribution, with the possibility of guaranteeing the return of the capital even up to its full value.

Qualification and conditions for obtaining a loan

The main condition for benefiting from the programme is that you do not own a property. However, there are exceptions, as in the case of households with three or more children. The programme also allows one spouse to apply for the loan alone if the other spouse already owned a property.

Rules for subsidies and limits

Under the newly introduced ‘Mieszkanie na Start’, mortgages will be offered for a minimum term of 15 years. During the first five years, borrowers can expect a fixed interest rate and a loan repayment in the form of decreasing instalments. An important aspect is that the government subsidies will cover the first 60 loan instalments.

The mechanism for calculating the surcharge remains consistent with that used under the ‘Bezpieczny Kredyt 2%’.

The bill provides for different subsidy rates depending on the household’s situation:

  • For households without children, a constant of 1.5 is subtracted from the rate in the formula.
  • For households with one child, a constant of 1 is subtracted.
  • For households with two children, the constant is 0.5.
  • And for three children or more, a constant of 0 is subtracted.

Income and quota limits

The proposed law introducing the “Mieszkanie na Start” contains important mechanisms to regulate the amount of subsidies, depending on the income of borrowers. The first of these concerns household income. It is specified that in a situation where the income of a one-person household exceeds PLN 7,000 per month, the surcharge on the loan instalment will be reduced by 50% of the amount exceeding this threshold.

Further regulations apply to multi-person households. The amount of the housing loan instalment subsidy is reduced by 25% of exceeding a set income limit, which varies depending on the number of persons in the household:

  • PLN 13 000 – for two-person households,
  • PLN 16,000 – for three-person households,
  • PLN 19,500 – for four-person households,
  • PLN 23 000 – for households with five or more persons.

Each loan application will have to be supplemented with a statement of monthly income to allow proper assessment of eligibility for the subsidy.

Subsidy amount

The ‘Mieszkanie na Start’ bill introduces another important element regulating the amount of subsidies – namely, the dependence on the amount of the mortgage. Depending on the size of the household, specific amount thresholds have been set, above which subsidies are calculated on a certain level of capital:

  • For one-person households, when the loan amount exceeds PLN 200,000, the subsidies are calculated on the amount of PLN 200,000.
  • For two-person households, the limit is PLN 400 thousand.
  • For three-person households, the amount increases to PLN 450 thousand.
  • Four-person households have a limit set at PLN 500 thousand.
  • For five-person or larger households, the loan amount on which subsidies are calculated is PLN 600 thousand.

In the context of consumer credit, the set limit is PLN 100 thousand.

It is also possible to increase the above-mentioned limits in situations where the property is located in a larger urban centre (population exceeds 300,000). In such a case, if the conversion rate of the replacement cost of 1 sq m of usable floor area is higher than that announced by the President of the Central Statistical Office by at least 25% (but less than 50%), the limit amounts are increased by 10%. If the index is higher by 50% or more, the increase is 20%.

An additional limitation is the surface area of the premises. When the floor area exceeds the value determined by the formula

25 + 25 * [number of persons in the household].

the surcharge is reduced by PLN 50 for each square metre over the limit.

Quantitative access limitation

The scheme provides for a quarterly cap on the number of applications, with a larger pool available in the first year of operation. This is to ensure equitable access and avoid overloading.

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