Loan with extra charge
There are more and more apartments on the Greater Poland real estate market that can be bought with a loan.
Over the past year, the use of subsidies has become possible, among others, in Poznań, where previously such a solution was practically unrealistic.
Until recently, obtaining a subsidy for the interest on a home loan was a miracle. In Warsaw and other large cities, this was impossible. All because of low price limits at which it is possible to receive a surcharge. Even a 30% increase in these limits did not help in August 2007, an analyst at Good Finance.
More and more apartments are appearing on the market
The prices of which are within the limit set by voivodes. According to Good Finance’s report – in the second quarter of the year in Warsaw, the offer of the cheapest flats, i.e. up to USD 6,000 per meter, increased by as much as 100 percent. Although these flats still only make up about 0.5 percent of all proposals, finding such housing has finally become possible.
The supply of flats with a metro price from USD 6,000 to 7,000 has also increased, such offers account for 3.2 percent of all offers, compared to 2 percent a quarter earlier. These flats can also be bought with a loan – the limit set by law in Warsaw is USD 6,697.
How does the surcharge work? The Act sets out a number of specific conditions. Families or single parents who buy or build a cheap apartment or house can count on a refund of part of the loan interest from the state budget in the first 8 years of repayment.
The flat, however, cannot be larger than 75 square meters, and the house cannot exceed 140 meters. The additional payment will cover 50 or 70 meters, respectively: flat or home. To use it, the price of a square meter of a flat you are buying must be lower than the limit for a given point announced by the voivode.
The customer should, therefore, choose the one offering the lowest interest
However, the same amount of subsidy is the same in all banks, because it does not depend on the actual interest rate on the loan but on the reference rate.
In Warsaw, the statutory limit is almost USD 6,700 per meter, while the market average is USD 8,800. In Poznań, the limit is USD 5057, and the average price is more than a thousand zlotys higher. In Krakow, the disproportion is greater – USD 4,299 against USD 7,700.
Good Finance checked how the ratio of the limit set by law to the average market price of real estate is shaped in individual cities.
We assumed that if the calculated ratio is lower than 80 percent, the chances of getting a loan with an additional payment are very limited in a given city.