Already this Thursday, the proposal for the Law on Subsidizing Housing Loans should be on the Government’s table, through which the state intends to co-finance loans for the purchase of apartments or houses, and which is designed, among other things, to encourage birth rates.
This is a legislative proposal whereby the state would pay half of the loan installment for four full years for young families, with the obligation holder being up to 45 years old, who are buying their first apartment, building their first house, or wish to purchase a larger property due to a new addition to the family.
If the family has a child or adopts one during this period, the state would pay half of the loan installment for another two years. This means that this Law is designed to encourage birth rates, and it also allows for the measure to be applied in cases of building a house or purchasing an older property. New construction is, in fact, most accessible in larger urban areas, and with this proposal, the state aims to encourage families to stay in smaller communities, writes Novi List.
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-The public discussion that lasted until January 12 has also produced some news that we have included in the bill proposal, so the right to subsidy will be extended for another year, thus totaling five, if the family has a member with a disability greater than 50 percent. A new feature is the subsidy for loans for building the first house, which was not initially planned, while a significant change is that we have lowered the upper limit of the property price, up to which the subsidy will be paid, from 1,900 to 1,500 euros per square meter, said Minister of Construction and Spatial Planning Lovro Kuščević for Novi List.
He explained that the purchase of a property will be subsidized up to a total value of 100 thousand euros, or up to the maximum price of 1,500 euros per square meter.
If one wishes to buy a more expensive property, the difference will not be subsidized for the buyer.
It is also important to know that the maximum possible interest rate for the loan will be 3.75, and that repayment must last at least 15 and at most 30 years.
In parallel with the parliamentary procedure, the Agency for Legal Transactions and Mediation in Real Estate will gather banks that will participate in this program, and it is expected that banks will lower the prices of their new, unsold apartments that investors, indebted to them, have not managed to sell, Novi List reports.
