Subsidisation of housing loans
4,739 applications were received, out of which 4,599 were approved, whereas an amendment was requested for 88 applications, 11 were rejected and 41 applicants withdrew their applications.
The average amount of the subsidised loan is EUR 75,000.00, the average repayment period is 22 years, whereas the average age of the subsidised loan beneficiary is 32 years.
The effective interest rate is 2.17% on average, whereas the nominal interest rate is 2.08% annually.
The average monthly annuity amounts to about EUR 378 or HRK 2,830 respectively, out of which the monthly subsidy amounts to about EUR 125 or HRK 940 respectively.
Subsidisation of housing loans is a housing care programme within which the state, that is, the Ministry and the Agency for Transactions and Mediation in Immovable Properties (APN), contribute during a five-year period to the repayment of a portion of a housing loan for the purchase of an apartment or a house, or to the repayment of a portion of a loan for the construction of a house. The subsidy period shall be extended by two additional years for each child born for the duration of the subsidy. The subsidy shall also be extended by an additional year per each child the applicant has at the time of application for the loan, and it shall also be extended by one year if the applicant or a member of his/her household has an established disability exceeding 50% of physical damage.
The purpose of housing loan subsidies is to stimulate demographic reconstruction of society and urban regeneration of settlements, reduce the number of young people leaving the Republic of Croatia, encourage less developed towns and municipalities by greater subsidies, as well as additional subsidisation of births, juvenile children and persons with disabilities. In this way, the solving of housing issues is enabled under conditions that are significantly more favourable than market conditions in terms of loan conditions, which is supported by the fact that interest rates and loan repayment periods with non-repayable state subsidies have a downward trend over the years. 14 banks participated in this call with effective interest rates ranging from 2.09 per cent to 3.50 per cent.
Let us remind that in the period from 29 March to 14 May 2021, under the APN call for applications, all citizens under the age of 45 who do not own an apartment or house could submit their applications. Subsidies on loans are granted for the purchase of an apartment or house, that is, the construction of a house up to a maximum of EUR 1,500 per square meter, or up to a maximum loan amount of EUR 100,000 in HRK equivalent value. The loan repayment period shall not be less than 15 years.
The amount of the subsidy depends on the development index of the location where the real estate is purchased or built, and it ranges from 30 to 51 percent of the loan instalment. The highest subsidies are granted to those who intend to buy an apartment or a house or build a house in the least developed areas, whereas 30% of the monthly loan instalment goes to those who have decided to buy or build real estate in urban centres such as Zagreb.
Since the beginning of implementation, i.e., since 2017, a total of 21,902 subsidies have been approved for which about HRK 430 million have been paid from the state budget so far.
Applications per year:
2017 - 2,399 applications received
2,299 approved + 100 rejected, withdrawn or contracts terminated
2018 - 3,033 applications received
2,944 approved + 89 rejected, withdrawn or contracts terminated
2019 - 4,260 applications received
4,150 approved + 110 rejected, withdrawn or contracts terminated
2020 - round I - 3,681 applications received
3,618 approved + 63 rejected, withdrawn or contracts terminated
2020 - round II - 4,651 applications received
4,535 approved + 116 rejected, withdrawn or contracts terminated
2021 - 4,739 applications received
4,599 approved + 88 being complemented + 11 rejected + 41 withdrawn by applicants.
A new APN call is envisaged in spring 2022.
- Act on Housing Loan Subsidisation (Official Gazette 65/17, 61/18,66/19, 146/20)
- Instruction on the work of the Agency for Transactions and Mediation in Immovable Properties in Implementing the Act on Housing Loan Subsidies (Official Gazette 76/17)
- Agency for Transactions and Mediation in Immovable Properties