Subsidisation of housing loans
Subsidisation of housing loans is an aid measure by which the payment of part of the housing loan for the first five years of loan repayment is subsidised to young people. The measure has been implemented since 2017, more precisely the tenders were conducted in 2017 and 2018, and young people will again be able to apply for subsidised housing loans in the fall of 2019 and 2020, when new tenders will be launched.
In 2018, citizens could submit their applications from 3 September to 5 October. 3033 applications were submitted, which is 26 percent more than in 2017. The housing loan subsidy covers a period of five years and is extended by additional two years for each new-born child. The subsidies vary between 30 up to 51 percent, depending on the development index. The highest subsidies are granted to those who intend to buy an apartment or house or build a house in the most undeveloped regions, whereas 30 percent of the monthly loan instalment is granted to those who have decided to buy or build a property in urban centres like Zagreb.
The decision on granting loan subsidisation is passed by the Agency for Transactions and Mediation in Immovable Properties, after having established, by inspection of the decision and documents submitted by the selected lending institution, the fulfilment of the respective prescribed legal requirements.
By 25 January 2019, 2986 applications were approved out of the 3033 applications received; 25 applications were rejected, and 22 applicants withdrew their application.
The average age of people who receive subsidies is 33, and the average monthly installment or annuity is € 386, or HRK 2 900.
In 2018, the largest subsidy growth was recorded in the Slavonian counties: Vukovar-Srijem County where there were 44 subsidies in 2017 and 104 subsidies in 2018, and in Brod-Posavina County subsidy growth was recorded with an increase by 102 percent, followed by Virovitica-Podravina County with an increase by 96 percent, Požega-Slavonia County with an increase by 93 percent, Lika-Senj County with an increase by 84 percent and Osijek-Baranja County with the increase by 78 percent.
Most subsidies were granted in the city of Zagreb, 859, which is on the level of 2017. It is interesting to mention that in 2018 the subsidies for purchase or construction of a house were increased by 60 percent.
With this measure of housing care, more than 5,300 families have secured their home until now, whereas in the next two years five or six thousand families are expected to use this measure to purchase an apartment or house or to build a home. So far, more than 500 children have been born in families that use these subsidies.
In order to further improve this housing care measure in a way to allow the extension of subsidies also for families who already have children, a proposal of amendments to the Act has been prepared and submitted to undergo the legislative procedure.
- Act on Housing Loan Subsidisation (Official Gazette 65/17, 61/18)
- Instruction on the work of the Agency for Transactions and Mediation in Immovable Properties in Implementing the Act on Housing Loan Subsidies (Official Gazette 76/17)
- Agency for Transactions and Mediation in Immovable Properties