Cost of 'Safe Mortgage' scheme estimated at PLN 1 billion says dep min

The government-subsidised mortgages for the purchase of the first home will cost the state budget less than PLN 1 billion (EUR 225 million) this year, but the cost will increase to PLN 1.5 billion (EUR 340 million) in the following years, a deputy finance minister has said.

Artur Sobon, in an interview for public broadcaster Polish Radio 24 on Wednesday, said he expects that this year about 50,000 mortgages will be granted under the government's 'Safe Mortgage' programme.

"The money is guaranteed" he said.

The cost for the state budget "is slightly less than PLN 1 billion (EUR 225 million) this year and in the coming years it will be up to PLN 1.5 billion (EUR 340 million)," he said.

The state-subsidised housing loans with a fixed 2-percent interest rate have been available since Monday.

Eligible for the programme are home-buyers under 45 who have never owned a flat or other residential property.

The loan amount is capped at PLN 500,000 (EUR 112,775), with a PLN 600,000 (EUR 135,330) option for married couples and those who have at least one child.

State subsidies for the loans will extend over a period of 10 years.