AGENCY FOR PROPERTY TRADING AND CONCILIATION (APN) STARTED RECEIVING APPLICATIONS FOR SUBSIDIZED MORTGAGE LOANS ON MONDAY, AS PART OF THE FIFTH ROUND OF THE COMPETITION, WHILE BANKS HANDED OVER 611 APPLICATIONS OF THEIR CLIENTS TO THE AGENCY ON THE FIRST DAY.

APN, as suppliers of banks that provided client documentation, opened the doors at 8 am on Monday, according to an announcement made by the agency's director Dragan Hristov to the press in the APN's headquarters. As of now, 310 applications for subsidies have been received. Hristov stated that they expect around 3,000 to 4,000 applications in this round, in line with past experiences, and added that since the beginning of the measure, in 2017, and up to now, subsidies worth around 240 million kunas have been dispensed. Looking at the structure of this measure, although the smallest percentage of subsidies goes to large cities, the largest amount of subsidies has gone to those cities, with the expected largest amount being in Zagreb, according to Hristov. On the other hand, Minister of Spatial Planning, Construction and State Property Darko Horvat said that he is particularly delighted that the trend is no longer focusing on buying apartments in the center of Zagreb and the city itself as a priority, but rather that real estate is sought on the periphery of the capital town, in Zagreb County, and in rural areas, which are becoming "relevant and attractive" again. **Horvat stressed that he is certain that the measure will continue to ensure the necessary funds** Horvat recalls that there were doubts whether the subsidy program would continue into the month of September of this year, but stresses that there were no doubts whatsoever and that the necessary funds have been secured. According to estimates, a sum of 10-15 million kunas is secured for this year, and cumulatively, 160 to 180 million kunas will be needed for 2021. As he explained, the 10-15 million kunas secured for this year include the fact that contracts will begin being signed next month, and a maximum of two instalments per credit will be subsidized in November and December. "Therefore, we assess that 10-15 million kunas will be sufficient," Horvat said. This is because, as stated in the advertisement published on September 16th, the applications received since the beginning of the subsidized credit measure will be reviewed according to the time of receipt of the completed applications at APN, and will be approved until the planned funds are spent. Horvat also stated that he is certain that 2021 will not be the last year in which this type of competition will be opened, emphasizing that negotiations are already underway for 2021. He emphasized that the funds will be ensured in the state budget, so that the measure, in the form of competitions, will be a continuity in 2021, just as it has been in the past - 2022, and 2023. He also notes that the model "may be slightly" improved next year, aiming to make "a joint effect" between the POS housing construction model and the subsidized credit model. **The "pressure" to enter into credit agreements will be relieved, and new opportunities will be created** Horvat reveals that an effort will be made in the segment of subsidized housing construction (POS) to take a step forward with families across Croatia who wish to benefit from this model. This would involve the fact that they will not immediately be exposed to the "pressure" of entering into credit agreements, but that within the model they would be given the opportunity to acquire a right to occupation over a number of years before being able to obtain a credit for solving their housing needs. **Effective interest rates of banks from 2.12% to 3.50%** APN has earlier this month entered into agreements with 14 banks to provide subsidized mortgage loans, the highest effective interest rates offered by banks ranging from 2.12% to 3.50%. To this day, four rounds of applications for subvention of credits have been conducted, the last one in the spring of this year, and according to data from the Ministry of Construction's internet site, over 13,000 applications for subsidy have been approved through the four rounds, and more than 1,750 children have been born into families that use this measure. As per the previously announced conditions, anyone under the age of 45 can submit an application for a subsidized mortgage loan, and an application will be approved for the purchase of an apartment or house, or the construction of a house, up to a maximum of 1,500 euros per square meter, or a maximum credit worth of 100,000 euros in kunas. The deadline for credit repayment may not be shorter than 15 years. Subsidizing mortgage loans for young people subsidizes the payment of part of the mortgage loan in the first five years of repayment. For each child, or adopted child, born during the period of subsidized credits, the state subsidy is extended by an additional two years. Amendments to the law adopted in June last year allow for the extension of subsidies by an additional year for each child, as well as for families that already have children. This means that instead of lasting five years, the subsidy will last seven years for a family that already has two children. The amount of the subsidy depends on the level of development of the place where the real estate is purchased, or built, and ranges from 30% to 51% of the loan repayment instalment.

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