Family Housing Loan at Santander Bank Polska
The Guaranteed Housing Loan is now changing to a Family Housing Loan. The main changes are higher price limits on the properties financed by the loan, as well as the possibility of taking advantage of the family repayment for those who have a home equity contribution. The purposes of the loan will also change.
The Family Housing Loan addresses the needs of our customers who want to buy their first apartment or, in the case of families with at least two children, who are planning to buy a new apartment. The program allows people who do not have the equity required for a standard mortgage to obtain a loan. Customers who meet the conditions stipulated in the law can additionally take advantage of family repayment, which allows early repayment of the loan principal if the family has another child during the loan period. Now this option is also available to borrowers who have an equity contribution of 20% or even 30%. As a result, more people will be able to take advantage of the support and become owners of their property.
Until now, customers who had more than 10% of their own equity contribution could not benefit from the program. As of March 1, the loan is available not only to those with no own contribution, but also to those whose contribution is up to PLN 200,000 and does not exceed 20% for a variable interest rate loan or 30% for a fixed interest rate loan. The borrowers who meet the conditions outlined in the law will also be able to take advantage of BGK’s subsidized repayment of the debt after the family grows. In the case where the borrower’s contribution is only a building plot, the sum of the contribution and the loan cannot exceed PLN 1 million.
Family Housing Loan can be obtained by single persons, couples, married couples, as well as families with children. One of the conditions for getting the loan for single people, couples and married couples with one child is that they have no other property. Families raising two or more children can own a dwelling of the size specified in the law. On the other hand, with a minimum of two children and one residential property at the time of applying for the loan, the contribution cannot exceed 10%.
The good news is that the limits on the price of housing property that can be financed with the Family Housing Loan have been increased by about 8%.
The loan can be used to purchase an apartment or house on the primary or secondary market, renovate and finish the purchased property, or purchase a plot of land and build a house. An additional option offered by the Family Housing Loan is the purchase of a cooperative ownership right to a property.
The program also changes the rules for family repayment terms. An additional condition is that the borrower has not declared bankruptcy and has not overpaid the loan in excess of the portion covered by the BGK guarantee within three years from the date of the agreement. Once all the conditions are met, BGK will repay a portion of the Family Housing Loan in a single payment in the amount of – PLN 20,000 in the case of the birth of a second child and PLN 60,000 for a third or subsequent child.
The detailed terms and conditions of the Family Housing Loan are based on the Family Housing Loan Act of October 1, 2021 (as amended).
The credit decision depends on the result of an individual creditworthiness examination and credit risk assessment performed by Santander Bank Polska S.A.
The APR (Actual Annual Percentage Rate) for a mortgage-secured home loan with a periodic fixed interest rate is 9.42%.
