In April, the Polish government announced a draft update to the “safe loan 2%” program. This modification of the program, introduced in 2023 by the previous government, contains many changes compared to the previous version. The legislative process has now begun and will take several months. The program is expected to come into effect in autumn 2024. The new program will be called “Kredyt na start,” or as noted in the draft, #naStart.
It should be added that at the time of publishing this text, it is uncertain whether the program will come into effect at all and in what form. The leaders of the two smaller coalition parties that currently form the Polish government are criticizing the proposed project, and their support is uncertain.
What Happened to the Previous 2% Program?
The previous 2% program was introduced in July 2023. It had budget limits for each year from 2023 to 2027. The year 2023 was unique because it was assumed that if the pool of funds was exhausted, the 2024 budget limit would be used. This indeed happened – the demand was so high that by the end of November 2023, it was clear that the 2024 pool would be used, meaning applications could only be submitted until the end of 2023 (based on the application submission date). The market heated up – everyone who met the criteria rushed to submit their applications, the market was cleared of apartments, and prices in major cities increased by 20%.
Less for Singles, More for Families with Children
The previous version of the program could be briefly described as “2% for everyone.” This time, the subsidy amount will vary depending on criteria such as:
- The number of children in the household (more children – higher subsidy)
- Income level (subsidy reduction if household income exceeds the limit)
- Apartment size – subsidy reduction above a specified area
Disclaimer! In this article, I tried to keep it simple, but since the new version of the program is much more complicated than the previous one, if you’re unsure whether you meet the program’s criteria, email me at kamil@polishmortgage.pl and schedule a free consultation.
Main Assumptions
First-Time Buyers
The program is aimed at people who do not own a residential property* (and have never owned one), as well as those who have never had a mortgage.
- *Exception 1 – does not apply to families with at least three children.
- *Exception 2 – one spouse can apply for a loan individually if the other spouse already owned property as part of separate property or has a right to property under a separation of property regime.
Purpose of the Loan
- Purchase of an apartment + finishing/renovation
- Purchase of a house + finishing/renovation
- Construction of a house / completion of construction
- Minimum Loan Period: 15 Years, Subsidy Period: 10 Years
These parameters have not changed from the previous version – the loan can be taken for a longer period, e.g., 25 years, but the subsidy applies only for the first 10 years.
No Age Limit (Except Singles)
There is no age limit for joining the program. The exception is singles – in their case, the age limit is set at 35 years. This means that a single person cannot be over 35 years old at the time of submitting the loan application (the application registration date in the bank system counts).
No Down Payment Needed
This works exactly the same as in the previous version of the program. For details, please check the previous article.
No Purchase Price or Down Payment Limit
Unlike the previous edition of the program, the legislator has not set a maximum loan amount or down payment.
The more household members, the higher the subsidy you’ll receive
Single Applicants
Age Limit: 35 years. The application submission date counts – you cannot be over 35 years old when the application is registered by the bank.
Subsidy Amount: Effective interest rate 1.5% with a limit of 200,000 PLN (subsidies calculated up to 200,000 PLN, it means that mortgage amount can be higher, but the subsidy is only paid up to this limit)
Income Limit: 7,000 PLN net/month*
*If a single-person household’s income exceeds 7,000 PLN per month, the subsidy to the loan installment decreases by 50% of the excess amount. The limit is higher by 10% for following cities: Gdanks, Poznan, Krakow, Wroclaw and 20% for Warsaw.
Apartment Size Limit:
If the apartment’s area exceeds 50 m², the subsidy decreases by 50 PLN for each square meter above the limit.
2+0 Household
A change from the previous version of the program is that couples without children living in informal relationships can join.
Subsidy Amount: Effective interest rate 1.5% with a limit of 400,000 PLN (subsidies calculated up to 400,000 PLN).
Income Limit: 13,000 PLN net/month*
*If the household’s income exceeds the set limit, the subsidy to the housing loan installment decreases by 25% of the excess amount. The limit is higher by 10% for following cities: Gdanks, Poznan, Krakow, Wroclaw and 20% for Warsaw.
Apartment Size Limit:
If the apartment’s area exceeds 75 m², the subsidy decreases by 50 PLN for each square meter above the limit.
1+1 Household
Subsidy Amount: Effective interest rate 1% with a limit of 400,000 PLN (subsidies calculated up to 400,000 PLN).
Income Limit: 13,000 PLN net/month*
*If the household’s income exceeds the set limit, the subsidy to the housing loan installment decreases by 25% of the excess amount. The limit is higher by 10% for following cities: Gdanks, Poznan, Krakow, Wroclaw and 20% for Warsaw.
Apartment Size Limit:
If the apartment’s area exceeds 75 m², the subsidy decreases by 50 PLN for each square meter above the limit.
2+1 Household
Subsidy Amount: Effective interest rate 1% with a limit of 450,000 PLN (subsidies calculated up to 450,000 PLN).
Income Limit: 16,000 PLN net/month*
*If the household’s income exceeds the set limit, the subsidy to the housing loan installment decreases by 25% of the excess amount. The limit is higher by 10% for following cities: Gdanks, Poznan, Krakow, Wroclaw and 20% for Warsaw.
Apartment Size Limit:
If the apartment’s area exceeds 100 m², the subsidy decreases by 50 PLN for each square meter above the limit.
2+2 Household
Subsidy Amount: Effective interest rate 0.5% with a limit of 500,000 PLN (subsidies calculated up to 500,000 PLN).
Income Limit: 19,500 PLN net/month*
*If the household’s income exceeds the set limit, the subsidy to the housing loan installment decreases by 25% of the excess amount. The limit is higher by 10% for following cities: Gdanks, Poznan, Krakow, Wroclaw and 20% for Warsaw.
Apartment Size Limit:
If the apartment’s area exceeds 125 m², the subsidy decreases by 50 PLN for each square meter above the limit.
2+3 Household (No Need to Be First-Time Buyers)
Subsidy Amount: Effective interest rate 0% with a limit of 600,000 PLN (subsidies calculated up to 600,000 PLN).
Income Limit: 23,000 PLN net/month*
*If the household’s income exceeds the set limit, the subsidy to the housing loan installment decreases by 25% of the excess amount. The limit is higher by 10% for following cities: Gdanks, Poznan, Krakow, Wroclaw and 20% for Warsaw.
Apartment Size Limit:
If the apartment’s area exceeds 150 m², the subsidy decreases by 50 PLN for each square meter above the limit.
15,000 Loan Applications Per Quarter
The new draft anticipates a limit of 15,000 applications per quarter. However, in 2024, this limit will be 35,000 for the entire year.
What If I Don’t Meet the Program Criteria?
If you plan to buy an apartment this year and do not meet the program criteria, it seems rational to finalize the transaction before the new program comes into effect. The market expects that, similar to 2023, government-subsidized loans will further increase residential property prices.
On the other hand, whether the program will be implemented at all is in question. The coalition parties in the current government do not agree on whether the program in its current form is beneficial for the housing market – opponents argue that the previous program contributed to a significant increase in housing prices, and its main effect has been the profits of developers and banks.
If you want to discuss real estate and mortgages, email me at kamil@polishmortgage.pl. Over the past years, I have specialized as a mortgage broker for non-Polish people living here. You can check out some of my clients reviews on my LinkedIn profile: Kamil Tracz
