The APN announced at the beginning of March a list of 13 banks with which a contract has been signed for the provision of subsidized mortgage loans, and the effective interest rates offered by the banks range from 2.19 to 3.70 percent.

The APN announced on Wednesday that 1,714 applications for subsidized mortgages have been received so far, and informed existing users that the subsidized part of the loan credit has been paid to banks for the entire year, and that it is in agreement that the bank will postpone payment to those who are unable to pay their monthly installment. The Agency for Business and Property Mediation (APN) began receiving applications for subsidized mortgages in a new round on March 30, and the Ministry of Construction and Spatial Planning repeats that the first of the two rounds of applications this year will remain open at least until the end of April, while the second round will be announced in the fall. According to the announcement on the APN's website, applications for subsidized mortgages are processed in the order of receipt, and credit institutions submit applications electronically, via courier and via mail. APN employees process applications in accordance with the director's decision, and are divided into two teams, one working from the office and the other from home, note from the APN. "The Young Families Subsidized Mortgage Program is operating according to plan despite all extraordinary circumstances. All those who have applied or want to apply, do not need to worry about the administrative part. All applications will be processed, and those who apply will be notified in due time whether the documentation is complete, if additional information is required, and the like," emphasizes Premier's Deputy and Minister of Construction and Spatial Planning Predrag Štromar in the announcement on the Ministry's website. Effective interest rates range from 2.19 to 3.70 percent The APN announced at the beginning of March a list of 13 banks with which a contract has been signed for the provision of subsidized mortgage loans, and the effective interest rates offered by the banks range from 2.19 to 3.70 percent. The state helps citizens with housing loans by assisting with paying off their mortgage loans for the purchase of an apartment or house, or by paying off construction loan, for a period of five years. Citizens under 45 years old who do not own an apartment or house are eligible to apply. Subsidized credit is approved for the purchase of an apartment or house, or for building a house up to a maximum of 1,500 euros per square meter, or a maximum credit of 100,000 euros in Croatian kunas. The loan repayment period must not be less than 15 years, and the amount of the subsidy depends on the development index of the location where the property is purchased or built, and ranges from 30 to 51 percent of the loan rate. The duration of the subsidy extends by two additional years for each newborn child during the duration of the subsidy, and by one additional year for each child the person has at the time of application. This means that for a family that already has two children at the time of application, the subsidy will last seven years instead of five, and if they have another child during the subsidy period, the subsidy will last nine years. In three years of implementing subsidized credits, more than 9,400 subsidized credits have been approved, and 1,275 children have been born in households that use subsidies, according to the Ministry of Construction and Spatial Planning. APN pays unpaid part of the loan for the entire year to banks for existing users APN announced separately on Wednesday that it has paid the subsidy amount in advance for the entire year to all borrowers of subsidized mortgages, and that it is in agreement that the bank will extend the payment term for a borrower who is unable to pay their monthly installment. "APN informs users of subsidized mortgages that it has fulfilled its obligation in accordance with the decisions on the approval of subsidized mortgages and concluded contracts. For each borrower, APN has paid the subsidy amount in advance for the entire year to the bank accounts of banks by credit parts," reads the announcement on the APN's website. Furthermore, they state that if an individual borrower of a subsidized loan is unable to pay their monthly installment, APN is in agreement that the bank will meet them halfway and extend the payment term for a certain period. "This decision does not change the decision on the approval of subsidized mortgages, since the subsidized funds are fixed and already paid. The decision will be changed by APN as before when an individual borrower has a child during the subsidy period, or when the applicant or member of their household is diagnosed with at least 50 percent disability and is registered in the Croatian Register of Persons with Disabilities," say APN officials. If a bank agrees to grant a moratorium on a borrower's installment for a few months, the tripartite contract does not need to be changed and re-signed, and will not cause additional costs for the borrower, note from the APN.

Source: business.hr

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