From 2017, 17,500 applications for housing subsidies were approved The Agency for Legal Transactions and Real Estate Brokerage (APN) announced on Wednesday a call for subsidized housing loans, stating that new applications will be accepted starting from March 29th this year. As stated in the announcement published in daily newspapers and on the website of the Ministry in charge, applications submitted since the start of the subsidized loans will be reviewed based on the time of receipt of complete applications in the APN, and they will be approved up to the exhaustion of the planned funds. The public is reminded that an application for a subsidized loan must be submitted to an appointed credit institution that has been authorized to grant loans, which then submits the application to the APN with all the necessary documents. It is also noted that incomplete applications, as well as those submitted before the start of the subsidized loan program, i.e., before March 29th, will not be reviewed. The APN signed contracts with 14 banks on February 26th for the provision of subsidized housing loans, with the highest effective interest rates offered by the banks ranging from 2.09% to 3.50% in kuna and 2.15% to 3.50% in euros. As previously reported by the Ministry of Spatial Planning, Construction, and State Property, it is planned to spend 50 million kuna on the measure for subsidized housing loans this year. From 2017 to date, 17,500 applications for subsidized housing have been approved On the call, anyone under 45 years of age who does not own a home or apartment can register, as was already known from previous competitions. The loan is approved only for the purchase of an apartment or house or the construction of a house to a maximum of 1,500 euros per square meter, or to a total loan amount of 100,000 euros in kuna equivalent. The loan repayment period must not be shorter than 15 years. The size of the subsidy depends on the development index of the area where the property is purchased or built and ranges from 30% to 51% of the loan amount. Since the start of the implementation of this measure in 2017, 17,526 loan applications for subsidized housing have been approved, including the last two calls in March and September 2020. As the Ministry in charge pointed out, the APN receives new applications for additional subsidized housing every day due to the birth of a child. A total of approximately 2,700 children have been born since 2017, which, in turn, has earned the right for the users of the loan to additional subsidized housing for two years per child. As a positive trend in this period, the Ministry has highlighted the decrease in the average annual effective interest rate (EKR), which was 2.28% for subsidized housing loans in 2020, a full percentage point lower than 2017, when it was 3.35%. It is worth noting that the Croatian Parliament amended the Law on Subsidized Housing Loans at the end of last year, prolonging the deadline for the APN to announce public calls for subsidies until the end of 2023. The amendments have also regulated that interested parties must have a registered residence on the address of the purchased or built property for at least two years after the end of the loan subsidy. It has also been regulated that the subsidy will be rejected by applicants who have already received one and that the paid funds will not need to be returned if the subsidized apartment or house is sold to purchase a larger apartment, house or construct a house. Source: Poslovni.hr/Hina

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