Given the high demand, the loans will be approved on the first-come, first-served basis.
The Real Estate Agency (APN) has received bids from banks which have applied to participate in providing loans to citizens under preferential terms. People interested in such loans will send their applications to selected banks, and the final decision on who will receive the subsidised loans will depend on who will send the application first, reports tportal.hr on August 15, 2017.
A list of banks which will approve loans will be published by the APN after it processes the bids which have been received, and the deadline for applications by citizens will be announced soon. The APN explains that it is not possible to determine the exact date at this time, but they expect it to be sometime in early September. If you want a subsidy, you need to submit a loan request to one of the selected banks as soon as possible. The bank will forward your application to the APN for final approval.
According to sources from banks, the interest for these loans is extremely high, so it can be expected that the demand will be significantly greater than the amount appropriated by the government for the subsidies. The government has secured 17.5 million kunas for this year, which can cover between 1,000 and 1,500 subsidised loans. Therefore, the subsidies will be granted in the order of receipt of applications by the APN. If there are more simultaneously submitted applications, the approval will first be granted to requests with a smaller amount of the requested loan.
In other words, whether you will ultimately receive a subsidy or not will depend on the bank’s timeliness in processing the loan application, the amount of the grant demanded, and the speed of submission of requests to the APN. In order to have better chances, it is necessary to collect the documentation as soon as possible and submit them to the bank.
The law on subsidised loans allows citizens to solve their housing problems at a more favourable cost, provided they are buying their first apartment or home or purchasing a larger apartment or house (provided they sell the first property within two years). The state will subsidise the acquisition of an apartment or house, or the construction of a house, of a maximum value of 100,000 euros, and the price of a square metre should not exceed 1,500 euros. The price can be higher, but in that case, the difference will not be subsidised. Also, repayment period must not be shorter than 15 years.
During the first four years, the subsidy will cover 50 percent of the repayment instalments for people under the age of 45, who are buying their first home or are buying a larger home due to an increase in the number of family members. In addition to the basic subsidy, which will last for the first four years of the loan repayment period, there is also the possibility of extending subsidies for each new or adopted child for additional two years.
The interest rate during the first four years must not be higher than 3.75 % annually, and after the first four years, it can be increased in the next two years by up to ten percent. After six years, the interest rate is determined in accordance with market conditions.
According to the calculations, the savings during the first four years will range from 8,260 euros to 16,500 euros (depending on the loan amount and the length of the repayment period).
Translated from tportal.hr.
