Agency for Legal Affairs and Immovable Property Mediation (APN) has so far processed 2,500 requests, out of which 2,462 have been approved, three were rejected, four applicants withdrew, and 31 requests required additional documentation. APN has received a record 5,870 requests for subsidized housing loans in the seventh tender, with Minister Ivan Paladina announcing that additional funds will be secured for all approved requests. The receipt of requests for subsidized housing loans began on March 21 and ended on April 22. The total number of requests received is the highest in all seven tenders so far. For comparison, in last year's tender, a record number of over 1,100 fewer requests were received, a total of 4,739. The planned budget for this measure in the current year was 50 million kuna, but due to the large number of received requests, Minister of Spatial Planning, Construction and State Property Ivan Paladina stated that he is aware that a larger amount of funds will be needed for subsidies this year. “This is a very important program not only of this ministry but also of the Government as a whole, so I have already discussed this issue with the Prime Minister and the Minister of Finance over the weekend. It has been agreed that these funds will be secured, so no one needs to worry if there will be enough funds for all approved requests,” Paladina emphasized in a statement that was released in a press release. Paladina also said that the record number of received requests shows the continuous great interest of citizens in resolving their own housing issue, and that in the future he will consider ways to further improve this field. “Already, I have announced that we will analyze the implementation of this program in detail throughout the year, taking into account all circumstances, as well as comments from real estate market experts who have been made in the previous period, especially those concerning the growth of real estate prices. However, the record number of received requests shows the importance of the program that helps resolve the housing issue of young families," Paladina said. 2,462 approved requests so far Agency for Legal Affairs and Immovable Property Mediation (APN) has so far processed 2,500 requests, out of which 2,462 have been approved, three were rejected, four applicants withdrew, and 31 requests required additional documentation. The average amount of the approved subsidized loan is 78,000 euros, the average repayment period is 22 years, and the average lifespan of the beneficiaries of the subsidized loan is 32 years. The effective interest rate is on average 2.08 percent, the average monthly anuity that will be paid by citizens is 3,035 kuna, and the monthly subsidy is 1,020 kuna, the Ministry stated. APN signed contracts with 14 banks APN signed contracts with 14 banks on March 4 to provide subsidized housing loans, with the offered effective interest rates ranging from 1.99 to 3.50 percent. The Law on Subsidized Housing Loans allows for the subsidization of the monthly installments or anuities of the loan user for a housing loan taken out by citizens at credit institutions to purchase an apartment or house, or to build a house, with the purpose of resolving their housing issue. The state subsidy is awarded for the first five years of loan repayment, with the possibility of extending it by two years for each living child born during the period of subsidized loan repayment. The possibility of extending the subsidy by an additional year for each child is also allowed for families that already have children at the time of submitting the request, as well as in the case where the applicant or family member of the household is determined to have a disability of over 50 percent physical disability. All citizens of the Republic of Croatia who are under 45 years old and do not have an apartment or house in their ownership can benefit from this measure. Subsidy is granted for the purchase of an apartment or house, or for the construction of a house up to a maximum of 1,500 euros per square meter and a maximum credit amount of 100,000 euros in the kunas currency equivalent. The loan repayment period cannot be shorter than 15 years. The level of subsidy depends on the level of development of the place where the real estate is purchased or built, and ranges from 30 to 51 percent of the loan interest rate. The largest subsidies are awarded to those who purchase an apartment or house or build a house in the least developed areas, while 30 percent of the monthly loan installment goes to those who have decided to buy or build a property in urban centers such as Zagreb. The Housing Loan Subsidy Program has been implemented since 2017, with over 22,000 requests approved so far, and approximately 5,300 children have been born into families that use the subsidy. Source: poslovni.hr

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