Can a foreigner apply for a mortgage under the First Apartment program?

On 07.06.2023, the First Apartment program was signed by the President of the Republic of Poland. This is a program that includes a number of facilities for the customer applying for a mortgage. The question arises whether customers who are foreigners working and living in Poland can apply for this loan.

Let’s start with the basics of the program’s assumptions. Its addressees are:

– customers ready to buy their first apartment or single-family house (Safe Credit 2%);

– customers planning to buy their first apartment or single-family house in the next few years. The period of savings accumulation within the framework of the Housing Account minimum 3 years – maximum 10 years. (Housing Account).

What does the “2% Safe Credit” program consist of?

A mortgage loan on preferential terms for the purchase of the first apartment or house, for the construction or completion of a house.

For 10 years, the interest rate on the loan will be reduced thanks to a subsidy from the Government program Housing Fund paid by the BGK .

The bank’s margin may not be higher than in other mortgage loans. The lending bank provides family credit and secure 2% loan at interest rate and commission terms, not worse than the terms and conditions, of the other credit offer, with the same repayment period and method and thesame amount of own contribution. Let’s focus on the first group of customers who would like to buy their first property now and are also foreigners.

The basic assumptions for all those who qualify, are as follows:

The housing loan installment subsidy will be the difference between the average interest rate on newly issued housing loans with a periodically fixed interest rate interest rate (fixed rate over 5 years), adjusted by a factor reflecting the component of the bank’s margin (the draft assumes 0.9 average interest rate), and the interest rate on the loan of 2% (base interest rate).

The average interest rate on fixed-rate housing loans granted will be determined quarterly, based on information from lending banks on the average interest rate of newly granted loans bearing interest at a periodically fixed interest rate interest rate (volume-weighted average.The installment subsidy will be available for a period of 10 years (120 installments of loan repayment).

A customer interested in purchasing a property under the “2% Safe Credit” program must:

-have a maximum age of 45 years;

-have creditworthiness;

-have an own contribution; or use the Family Housing Loan program

-not have ownership rights to the property;

-not have a cooperative right to a dwelling; -not have a mortgage;

-not have a mortgage;

-be ready to buy your first apartment or single-family house

The 2% safe loan can also be dedicated to foreigners, if such a person without Polish citizenship runs a household together with a person with such citizenship, and the loan is granted together with this person. This provision makes it clear that a foreigner can apply for credit, but only if they run a joint household together (a married/unmarried couple) and apply for credit together with that person. On the one hand, this is to some extent disqualifying for clients who are foreigners and would like to join this program on their own, but on the other hand, it gives a certain group with stronger ties to Poland through the prism of being in a relationship the opportunity to obtain a subsidy.

I invite you to discuss and contact me directly to clarify the provisions of the program with a 2% subsidy

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