Everything We Know About 2 Percent Safe Loan

For many people in our country, the first own apartment is a dream, which is extremely difficult to realize. This situation should be corrected by the “Reliable Credit 2%” program, which, according to announcements and a bill that is still being developed, should be launched in the third quarter of this year.

How exactly is this supposed to work?

Simply put, the Safe Loan 2% program. involves state subsidization of mortgage loans, which should reduce the fixed rate on the loan to the level of 2 percent, i.е. similar to those in place prior to the COVID-19 pandemic. The bank’s margin, commissions and other bank charges (if any are charged by the bank) must be added to this level. State subsidies, in accordance with the draft law, should be provided within the first 10 years after the repayment of the loan. After this time, the borrower will continue to repay his loan in the form of a fixed amount of principal and interest payments (so no subsidies).

Who is the Safe 2% loan for?

2% Safe Loan is a program aimed at individuals under the age of 45 who do not and have never owned their own apartment, house or co-op right to an apartment or house. Subsidies will be available to single people, married couples and people who have an informal relationship with at least one child. Therefore, the draft act does not provide for the possibility of obtaining a “Safe 2%” loan. unmarried couples with no children.

In the case of married couples and people who have at least one child, only one of the two persons interested in the loan must meet the age criterion. However, both persons will have to satisfy the condition of the first apartment.

Safe loan 2 percent? will you be able to take on each loan?

No, secure loan 2% You can only take out a loan up to PLN 500,000. For parents with a child and married couples, this maximum loan amount will be increased to PLN 600,000. The designed solution does not limit the price per 1 square meter of an apartment or house or the origin of the property. Therefore, premises can come from both the primary and secondary markets.

A 2% secure loan can also be provided for the construction of an individual house, its finishing and the acquisition of ownership of the land or part of it to build a house on it.

In the course of parliamentary work on the law, an amendment was also adopted, which provides for the possibility of obtaining a Secured loan at 2%. complete a house that was previously built for cash. However, the amount of such a loan can then only be PLN 150,000 (for a borrower with at least one child or with a spouse) or PLN 100,000 (for a borrower with a one-person household).

What conditions must be met in order to be eligible for the Safe 2% loan?

To receive a subsidy for a loan under the program “Reliable loan 2%”. must meet a number of requirements, such as:

Possession of creditworthiness for obtaining a loan in a given amount;

• Age criterion - that is, only for borrowers under 45 years old (in the case of married couples and persons who are in an informal relationship with at least one child, one of the borrowers or both of them may meet this criterion);

• Criteria for the first apartment, that is, the absence of ownership and cooperative rights to an apartment or a single-family house (mandatory for all borrowers).

Other important information about the 2 percent safe loan.

• According to the current draft law, Safe Loan 2% can be combined with the “Apartment without own contribution” program. Therefore, it will not work to take a loan with subsidies without own contribution.

• It will be possible to overpay a 2% safe loan, although under certain strictly defined conditions (for example, the prohibition of overpayment during the first three years from the date of issue of the loan).

• After the 10-year loan subsidization period, it is expected to find solutions to reduce the loan payment in case of a significant increase. the borrower will have the opportunity to extend the loan repayment period for a maximum of 5 years.

• In the case of property leases covered by Secure Credit, 2 percent. during the period of payment of subsidies in installments, the right to these subsidies expires on the last day of the month in which such rent is made. Renting out a house or apartment after the 10-year subsidy period has elapsed will no longer mean the need to return previously received subsidies.

• It is possible to sell property taken under a collateral loan of 2 percent. However, when this transaction is completed within the 10-year eligibility period for installment subsidies, eligibility for these subsidies will expire on the last day of the month in which such disposition occurs.

When will the 2% secure loan come into effect?

Work on the act of implementation of the described solution is very advanced. So far, the bill has returned from the Senate, which has made 24 amendments to it (including proposals to reduce the tax rate on credit from the planned 2 percent to 0 percent). On May 15, it was submitted to the State Finance Committee and the Infrastructure Committee.

According to the current wording, the law should come into force on July 1 of this year, which, given the pace of work, seems quite realistic.