Guaranteed housing loan within the framework of the Polish Deal

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A guaranteed housing loan is one of the solutions proposed under the Polish Deal (Polski Ład). President Andrzej Duda supported the idea by signing a law on Monday that will allow a one-time repayment of a part of the guaranteed housing loan. The financial aid offered by the state will depend on the loan amount and the borrower’s family situation.

The act, signed by the president, will allow for financial aid to be granted through the BGK of up to 20% of the loan amount. However, the amount cannot exceed PLN 100,000. A one-off repayment of a part of the loan, the so-called family repayment, will be possible in the event of the birth of a child. In the case of the enlargement of the family by a second child, the borrower will be able to benefit from a family repayment of PLN 20,000. On the other hand, in the case of the third or any subsequent child, the family repayment will amount to PLN 60,000. The condition for taking advantage of the programme is to take out a loan in the Polish currency for a minimum period of 15 years.

Additionally, within the framework of the act, mechanisms have been introduced to secure the market against a stimulated increase in housing prices. One of the solutions is a maximum price limit, including the construction contribution, per 1 m2 of the usable floor area of the flat. In addition, the Council of Ministers will be authorised to reduce the level of coefficients affecting statutory price limits through a regulation. Under the provisions of the act, a Government Housing Fund will be established in BGK.

The law also regulates the maximum amount of funds to be allocated from the state budget to the Government Housing Fund until 2032. In 2022 it will be PLN 100m, and in subsequent years the amount will be systematically increased so that in 2032 Government Housing Fund will receive PLN 2.150bn.