It is estimated that approximately €9.3 million will be needed for this year, equivalent to approximately 5,800 applications.

Agency for Trade and Property Mediation announced a new round of subsidized housing loans for buying an apartment or house, or building a house, and applications for subsidized loans will be accepted from March 20. The public call for citizens will be open for about a month, or until the earmarked state funds are exhausted, and it is estimated that approximately €9.3 million will be needed for this year, equivalent to approximately 5,800 applications. In the program of subsidized housing loans, 12 banks registered, and some of them have given more loan models that combine the height of the fixed interest rate and the duration of the fixed period. QUESTIONNAIRE: What is most important to citizens? 52% of respondents consider the height of the interest rate to be most important 30% of respondents consider the duration of the fixed interest rate period to be most important 18% of respondents consider the height of the effective interest rate to be most important *Opereta agency data In anticipation of this round of the APN, the Opereta agency conducted a survey through its media channels, asking the question "What is most important to citizens in choosing a credit?" We commented on the results with Martin Mataić Škugor, director of credit mediation at Opereta, with whom we spoke about how to compare bank conditions and choose the most favorable housing loan. According to the survey results, more than half of the respondents, specifically 52%, highlighted that the height of the interest rate is most important, which is also expected, since many pay attention to it in order to know if they can pay the installment amount every month. - In the offer for APN credits, the lowest nominal interest rate of 2.5% is fixed for the duration of the subsidy - our conversation partner says. Furthermore, 30% of respondents consider the duration of the fixed interest rate period to be most important, and Martin Mataić Škugor says that in this round, some banks offer a duration of up to 30 years, with a fixed nominal interest rate of 3.40 and 3.49 percent, depending on the bank.

What is subsidized? Subsidizing housing loans is approved for buying an apartment or house, or building a house up to a maximum of €1,500 per square meter, or up to a maximum loan amount of €100,000, provided that the repayment period may not be less than 15 years. The subsidy is awarded for the first five years of loan repayment, with the possibility of extending by two years for every live-born or adopted child in the loan repayment period.

- Most clients want a fixed interest rate for five or seven years so that they have security tied to the installment amounts in the first few years of loan repayment and so that they can apply for refinancing or switch to another bank where they can get a lower interest rate or a variable interest rate will be better. A smaller number of clients want a fixed interest rate for 30 years because the cycles on the real estate market change approximately every seven years - explains M. Mataić Škugor, adding that the situation on the market can be different in seven or ten years, so a fixed interest rate of 3.40 and 3.49 percent may be high compared to other conditions. Also, the survey showed that 18% of respondents consider the height of the effective interest rate (EKS) to be most important, which should be lower in order to have the lowest total cost of loan repayment. However, Martin Mataić Škugor points out that the lowest EKS is not a guarantee that the most favorable housing loan has been chosen! - The effective interest rate represents the total cost of the credit, and its height depends on the height of the interest rate, the loan repayment period, the duration of the fixed and variable interest rate period, the property insurance policy and other elements. However, it is not the first choice for clients to select a housing loan because they care more about how high the nominal interest rate is and how much they will have to pay in monthly installments - she says. She adds that banks do not use the same parameters when calculating EKS, so it is difficult to say based solely on EKS where the most favorable loans are. It is necessary to study other conditions as well. For example, if a bank requires a client's status, a new account must be opened and regular transfers must be directed to that bank; the height of the fixed interest rate and how many years the interest rate is fixed, then the height of the variable interest rate after the fixed period, the fixed part of the variable interest rate and the reference interest rate, and recommends comparing the repayment plan for repayment in installments and for repayment in installments.

Also, if the purchase price is higher than €100,000 or €1,500 per square meter, and the maximum subsidy is €1,500 per square meter, it is necessary to check under what conditions the bank approves a housing loan for this difference, i.e., offers it at the same interest rate as the subsidized loan or at the regular interest rate. - Subsidized loans are approved for a minimum of 15 years, so it is necessary to consider all elements, and a conversation with a credit mediator is the best way to learn everything you want to know about loans and offers from multiple banks - concludes Martin Mataić Škugor. 2023 vs. 2022 Interest rates for APN credits in 2023 are higher compared to 2022. In 2022, the average EKS was 2.32 percent, while in 2023 it is 3.46 percent, an increase of 1.14 percentage points. Also, the average NKS last year was 2.08 percent, and now it is 3.06 percent, an increase of 0.98 percentage points. Comparing the average NKS in 2022 and 2023, the Opereta agency showed how the increase in interest rates affects the installment amount in an example of a credit of €100,000, with a repayment period of 20 years, with the assumption that the nominal interest rate is fixed for the entire repayment period. - In our example, the monthly installment amount is higher in 2023 by €47.93, which affects a higher total interest paid, so the bank will pay a higher interest of €11,502.04, which is not a small difference - says M. Mataić Škugor.

Written by: Martin Mataić Škugor for Jutarnji.hr

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