Subsidisation of housing loans for young people

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Subsidisation of housing loans is an aid measure by which a part of the housing loan is subsidised to young people during the first five years of loan repayment. The measure has been implemented since 2017, that is, calls were carried out in 2017 and 2018, and young people can apply for subsidised housing loans, in addition to this year, also under calls that are planned in March and in September 2020.

Loan subsidisation is granted for the purchase of an apartment or house, or the construction of a house up to a maximum amount of EUR 1500 per square meter or to a maximum loan amount of EUR 100 000 in HRK equivalent. The loan repayment period shall not be shorter than 15 years. The subsidy amount depends on the development index of the locality where the property is bought or built, and it varies between 30 to 51 percent of the loan instalment amount. The highest subsidies can be realised by those who intend to purchase an apartment or house, or build a house, in the most underdeveloped areas, whereas 30 percent of the monthly loan instalment is paid to those who have decided to buy or build a property in urban centres such as Zagreb.

This housing provision measure is at the same time also a demographic measure, as for every born alive or adopted child during the loan subsidisation period, the State subsidy is prolonged for additional two years. By the latest amendments to the act that were adopted in June 2019, a prolongation of the subsidy for an additional year for every child is enabled also for those families who already have children. This specifically means that for a family that already has two children the subsidisation period shall last seven years instead of five years.  

To date, through this housing provision measures, more than 5300 families have secured their home, and in these families more than 850 children have been born.

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