programme

Flat for the Young

Flat for the Young

Why take advantage of the Flat for the Young government programme with Polnord?

  • Professional consultancy on the Flat for the Young government programme and mortgage loans is provided by Dom Kredytowy Notus S.A., one of Poland’s leading financial advisory companies.
  • Complimentary assistance in obtaining additional financing from the Flat for the Young government programme and a mortgage loan at a meeting with a financial advisor in one of our Sales Offices.
  • A wide range of apartments as part of the Flat for the Young government programme in Warsaw, the Tri-City, and Olsztyn.

Who is it for?

The following customer groups are eligible for the loan:

  • married couples,
  • single parents,
  • unmarried ( single) persons.

Additional terms and conditions

A loan under the Flat for the Young government programme is available to persons who, before the date the home is purchased:

  • did not own a single-family home or a residential property,
  • were not entitled to a cooperative member’s ownership right to the premises,
  • did not own or co-own the building if their share, in the event of removal of co-ownership, would comprise at least one premises.

Please note:

  • The above requirements do not apply to persons and married couples with at least 3 children.
  • Co-ownership of another premises or house is permitted, which means that if a person e.g. holds 50% of the share in the ownership right, such a person may take advantage of the Flat for the Young government programme.

Age of borrower

Anyone who turns 35 or under in the year in which they apply for the loan may apply for the loan. In other words, in 2015, people born in 1980 or later may apply for the loan. For married couples, only one person needs to meet the age requirement.

Please note:

The above requirement does not apply to persons and married couples with at least 3 children.

Additional co-borrowers

Any person approved by the lending bank will be able to accede to the loan as an additional co-borrower. The co-borrower cannot be the co-owner of the property.

Purpose of the loan

The purpose of the loan may be to build or purchase an apartment or single-family house from a developer on the primary market, or as part of projects carried out by housing cooperatives.

The purpose of the loan may also include:

  • purchasing real properties on the secondary market
  • purchasing usable space in a real property

The usable space cannot exceed the limits set out in the table below:

Type of borrower Number of children Type of property
HOUSE APARTMENT
MARRIED COUPLE 0-2 100 SQ. M 75 SQ. M
3 or more 110 SQ. M 85 SQ. M
SINGLE PARENT 0-2 100 SQ. M 75 SQ. M
3 or more 110 SQ. M 85 SQ. M
UNMARRIED PERSON 0 100 SQ. M 75 SQ. M

Price of the property

The price per square metre of the property being purchased cannot exceed the limit determined for each location. For the primary market, it is 110% of the average conversion index, with 90% of the average conversion index for the secondary market.

For each voivodship, there are three location categories :

  • the capital of the voivodship,
  • municipalities neighbouring the capital of the voivodship,
  • other municipalities in the voivodship

Subsidies

Subsidy for own contribution

Subsidies for own contributions represent 10, 15, 20 or 30% of the replacement value depending on the type of customer and the number of children, in accordance with the table below.

Type of borrower Number of children Subsidy
MARRIED COUPLE 0 10%
1 15%
2 20%
3 or more 30%
SINGLE PARENT 0 10%
1 15%
2 20%
3 or more 30%
UNMARRIED PERSON 0 10%

The subsidy is available for up to 50 sq. m of usable space, regardless of the type of property. The amount of subsidy is calculated using the following formulas:

  • Property with an area of up to 50 sq. m: Usable space * average conversion index * 10% / 15% / 20%
  • property with an area of more than 50 sq. m: 50 sq. m * average conversion index * 10% / 15% / 20%

However, for persons and married couples with at least three children, the subsidy is available for up to 65 sq. m of usable space, regardless of the type of property.

The subsidy is calculated using the following formulas:

  • Property with an area of up to 65 sq. m: Usable space * average conversion index * 30%
  • Property with an area of more than 65 sq. m: 65 sq. m * average conversion index *30%

Additional assistance in the form of repayment of a portion of the loan

If, within 5 years of purchasing the property, a third or subsequent child is added to the family, an additional 5% subsidy will be paid.

This subsidy (to help repay the loan) is paid irrespective of the subsidy to own contribution (10%/15%/20%/30%).

Requirements concerning the loan

  • Requirements concerning the loan,
  • repayment term - no less than 15 years,
  • the loan may only be used to purchase real property – no option to include renovations, fit-out works etc.

Transfer of funds

The subsidy funds constitute the last part of the payment. The subsidy is provided through the lending bank without the customer’s intermediation.

Refunding subsidies

Subsidies must be refunded if, within 5 years of purchasing the property, the borrower:

  • sells the right of ownership or co-ownership of the property,
  • leases or lends the apartment for use by another person,
  • modifies the use of the apartment in a manner that prevents the borrower from fulfilling his/her own housing needs,
  • becomes the owner of another residential property, save for inheritance,
  • repays the loan in full or overpays it in an amount that exceeds the amount of subsidy received.

The subsidy will be refunded on a pro-rata basis, depending on the timing of the above events. If the apartment is sold after 12 months, 48/60 subsidy payments will be refunded. If it is sold after 48 months, 12/60 subsidy payments will be refunded, etc.

Our Flat for the Young government programme expert

Do you have any other questions? Contact our Flat for the Young government programme expert.

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