Tomorrow marks the start of the seventh round of subsidizing housing loans

The Agency for Legal Transactions and Real Estate Mediation (APN) will begin accepting applications for subsidizing housing loans on Monday, in the seventh competition, with a planned expenditure of 50 million kuna for this measure this year.

Let us remind you that on March 9, an announcement was published regarding the start of subsidizing housing loans, from which citizens can submit their loan applications to banks, while on Monday, March 21, banks will begin submitting applications for subsidies to APN on behalf of their clients. The announcement will last until the allocated funds are exhausted, or until the announcement of cessation is published, and as already stated by the Ministry of Physical Planning, Construction and State Property, 50 million kuna is planned for this measure this year.

APN emphasized that applications from credit institutions will be accepted during office hours designated for client service, from 9 AM to 2 PM, with a maximum of 200 applications per day per credit institution. On March 4, APN signed contracts for subsidized housing loans with 14 credit institutions, and the highest effective interest rates offered by banks range from 1.99 percent to 3.50 percent. The lowest effective interest rate of 1.99 percent for both kuna and euro loans was offered by Erste&Steiermarkische Bank and Karlovačka Bank.

Hrvatska poštanska banka (HPB) has stated an effective interest rate of 2.05 percent for loans in both kuna and euros, OTP Bank at 2.18 percent, and Zagrebačka Bank (Zaba) at 2.19 percent. The same effective interest rate for loans in kuna and euros is also offered by Agram Bank at 2.34 percent, Privredna banka Zagreb (PBZ) at 2.37 percent, Podravska Bank at 2.49 percent, Kent Bank at 2.60 percent, Samoborska Bank at 2.82 percent, and Croatia Bank at 3.50 percent.

Three banks offer different interest rates for subsidized housing loans in two currencies. BKS Bank offers an effective interest rate of 2.46 percent for loans in kuna and 2.04 for loans in euros, Istarska kreditna banka Umag has stated an effective interest rate of 2.26 percent for kuna loans and 2.18 percent for euro loans, while Raiffeisen Bank offers citizens an interest rate of 2.86 percent for kuna and 2.33 percent for euros.

On the occasion of the start of accepting applications, a press conference will be held at APN on Monday at 1 PM, which will be attended by APN Director Dragan Hristov and Minister of Physical Planning, Construction and State Property Ivan Paladina.

So far, more than 22 thousand subsidies for housing loans have been approved

The Law on Subsidizing Housing Loans allows for the subsidization of the monthly amount of the installment or annuity for users of housing loans taken from credit institutions for the purchase of an apartment or house, or for the construction of a house, all for the purpose of solving housing issues. The state subsidy is granted for the first five years of loan repayment, with the possibility of extension for two years for each live-born or adopted child during the loan subsidization period.

The extension of subsidies for an additional year for each child is also allowed for families that already have children at the time of application, as well as in cases where the applicant or a member of their household has a disability of more than 50 percent.

Thus, the measure can be utilized by all citizens of the Republic of Croatia who are under 45 years of age and do not own an apartment or house. Subsidizing loans is approved for the purchase of an apartment or house, or for the construction of a house up to a maximum of 1,500 euros per square meter or up to the maximum loan amount of 100 thousand euros in kuna equivalent, with the loan repayment period not shorter than 15 years.

The amount of the subsidy depends on the development index of the place where the property is purchased or built, ranging from 30 to 51 percent of the loan installment amount. The largest subsidies are granted to those who buy an apartment or house or build a house in the least developed areas, while 30 percent of the monthly loan installment goes to those who decide to buy or build a property in urban centers such as Zagreb.

According to available data, since the implementation of this measure in 2017 until the last call in March 2021, 22,169 applications for subsidizing housing loans have been approved. Additionally, APN receives new applications daily for additional subsidization due to the birth of a child, which is why this measure is also considered important in the segment of encouraging demographic renewal. Since 2017, around five thousand children have been born in families that use subsidies.

Subsidizing housing loans is also planned for next year, while it is currently unknown whether it will continue after 2023.