Poland pledges aid to first-home buyers

Marek Zakrzewski/PAP

The Polish government has unveiled a subsidised mortgage scheme dubbed First Home aimed to help people under the age of 45 buy their first homes.

Under the new programme announced by Development and Technology Minister Waldemar Buda on Friday, the government plans to offer housing loans with a fixed 2-percent interest rate for a period of ten years, with the actual interest rate difference covered by the state.

"It's a loan that will be based on an interest rate of 2 percent," Buda told a press conference. "Anything above that threshold will be state subsidized."hom

The loan will be offered to people up to the age of 45 and only for their first house or apartment.

There will be no limit to the size of the home that can be bought with the subsidised mortgage, Buda said.

The maximum loan value in the frame of the scheme will be up to PLN 500,000 (EUR 106,540) for a one-person household and up to PLN 600,000 (EUR 127,862) for married couples, families and single parents.

Under the programme, people under 45 years of age will also be able to set up a special savings account at a commercial bank to save for their first home.

"A housing-savings package will also be made available, offering interest to the tune of the consumer inflation rate or the housing price index,” Buda said.

Those who make payments of between PLN 500 (EUR 106) and PLN 2,000 (EUR 426) into the savings account at least 11 times a year for a period of between three and ten years, and then spend the accumulated sum on buying a home within the next five years, will be eligible for an additional bonus calculated against the inflation rate during the savings period.

Buda said that the First Home programme should be launched on July 1, 2023.

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