It is well known that mortgage loans granted without an own down payment were withdrawn at the beginning of 2014. The reason was Recommendation S issued by the Polish Financial Supervision Authority, according to which banks were obliged to impose higher conditions on borrowers in order to reduce credit risk.
However, it should be taken into account that a mortgage is a liability for the next few decades. In addition, the loan comes with such fees as interest, commissions, and insurance.
In order to make it easier for young people to start a new life
The “Youth Apartment” program was created. It is a form of co-financing for own contribution. The basic condition is the appropriate age of people applying for funding and it is up to 35 years old (the age is important). Participation in the program is envisaged for both:
- lonely people
- in informal relationships and
A person applying for such funding may not be a co-owner or owner of an apartment. The subsidy from this program is granted for the purchase of a flat or house from the primary or even secondary market.
Own contribution will be financed when the mortgage is concluded in the Polish currency and its equivalent amounts to at least 50% of the price of the flat. A mortgage should be taken for at least 15 years.
It is estimated that a young family with an income of 5,000 USD net can expect a loan of around 450,000 zł. Meanwhile, the debt would be for 30 years. However, to receive the aforementioned amount, the PFSA stipulated that the own contribution should amount to $ 45 thousand dollars
The own contribution is to make the mortgage loan safer
In addition, it will make the installment lower and easier to pay. Of course, when looking for the best loan offer, it is worth asking at various banks, because the minimum own contribution for a housing loan can be from 5 to 20%. Banks offer mortgage loans with own deposits (often higher than those specified in the PFSA recommendation). However, for banks the most important is creditworthiness.
In the case of the “Apartment for the Young” program, subsidies of various amounts are foreseen, which is influenced by specific conditions. The program provides an own contribution to the loan, which ranges from 10 to 15 percent depending on the size of the family. It should be remembered that the application for support of own contribution together with the loan application should be directed to the banks that have signed the agreement with Goodpocket Bank.
Of course, there are ways to get a loan, such as having an own investment, the customer asks for a loan after construction. The second option is to activate part of the amount of the mortgage at the initial stage, and until the rest is paid, it regulates interest only on part of the amount launched.
There are many ways to get the amount you need, such as:
- company loan from the company’s cash register,
- cash loan from the bank for own contribution.
As a result, the customer first applies for a cash loan, which will be his own contribution, and then signs a mortgage contract.
The advantages of the MdM program include the possibility of buying real estate from the primary as well as the secondary market. Everyone interested can easily calculate the amount of their payment. It is worth remembering that the latest payment deadline is Q3 2018. Participation in the program is also provided for people who plan to build a single-family house in the economic system, and the co-financing takes the form of a refund of VAT on building materials.