At the end of 2023, the Ministry of Development and Technology has announced the continuation of the ‘2% Safe Mortgage’ programme by replacing it with a new, more beneficial form for borrowers – ‘Housing for Start’.
In the Ministry’s communication, one could find the announcement of greater availability of credit for those with lower incomes and a reduction in the availability of support for those who could afford the market offer credit. What is the new Safe Mortgage programme supposed to look like?
Effects of Safe Mortgage 2%
So far, interest in the first form of borrower support has been so high that it has exceeded even the boldest estimates of experts. As a result, the prices of flats on the largest markets have rapidly skyrocketed due to increased demand and greater financial possibilities for investors.
In order to avoid such a sharp rise in prices again, work is underway to introduce criteria limiting the availability of support. It is possible to introduce solutions known from the housing programmes of the previous PO and PSL governments, such as a limit on the metre size and the maximum price per square metre.
Such a solution will have the greatest impact on investors in large markets such as Warsaw or Kraków, where prices per metre of flats in attractive locations are several times higher than in smaller towns.
Restrictions on programme availability
The Minister for Development and Technology has announced his intention to launch the new programme from the middle of this year, and he anticipates thorough consultation until then. It is also possible to run an age limit for single people up to which it will be possible to benefit from the scheme.
Initial proposals indicate a limit of 35 for singles. For households comprising more than one person, there is no limit. An income limit for households is also planned. The preliminary draft envisages the following limits:
- for a 1-person household, the limit is 10 thousand gross,
- for a 2-person household – 18 thousand gross,
- for a 3-person household – 23 thousand gross,
- for a 4-person household – 28 thousand gross,
- for a 5-person household – 33 thousand gross.
‘Housing for Start’ - what will the mortgage subsidy be?
The size of the household will not only affect the income limits, but also the interest rate that the Housing for Start programme will cover.
The mortgage subsidy will be paid over a 10-year period and will depend on the following thresholds:
- 1.5 per cent. – for one- and two-person households;
- 1 per cent. – for 3-person households;
- 0.5 per cent. – for 4-person households;
- 0 per cent. – for households of 5 persons or more.
Consultation on the ‘Housing for Start’ programme
The Ministry of Development and Technology has announced that a consultation has been launched on the form of the new borrower support programme. The shape of the new programme will undoubtedly be influenced by the effects of the ‘2% Safe Mortgage’ and the changes in the market that this support has triggered.
In the coming months, we will find out how the ruling parties will design the new programme, which thousands of Poles are undoubtedly already waiting for. There will be a new post on our blog about the final form that the ‘Housing for Start’ programme will take as soon as the ministry prepares a law on the matter.
Summary - ‘Housing for Start’
The Ministry of Development is replacing the ‘2% Secure Mortgage’ programme with a new ‘Housing for Start’ with greater credit availability.
The programme will include age and income limits, and the loan subsidy will depend on the size of the household.
Consultations on the new programme are ongoing and final details will be published once the relevant law has been drafted.
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