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The construction sector, once a dynamic engine of the economy, has found itself in a difficult situation in recent years. In 2022, the economic downturn, caused, among other things, by high interest rates and the suspension of investments by developers, caused a visible decline in activity in residential construction. In this uncertain atmosphere, the government decided to take action to support the sector and citizens. As part of the widely commented “First Apartment” program, there is a proposal that is arousing more and more interest – “Safe Loan 2 percent”, a program of state subsidies for housing loans.
But what does this mean for people who planned to build a detached house? Is it possible to take a 2% loan to build a house – and if so, what should you watch out for when implementing investments? We have collected some of the most important information for you.
The “Safe Loan 2%” program is a response to the growing challenges in the construction sector. It offers attractive financing terms for people planning to buy an apartment or build a house. The maximum loan amount (available for one person) is USD 500 thousand. However, for married couples or parents with a child – the amount reaches PLN 600,000. It is worth noting that the program is available for both primary and secondary market properties, without imposing restrictions on prices per square meter of the apartment.
Borrowers have the opportunity to use the funds for a variety of purposes related to the apartment. The program allows you to both buy your first apartment and take out a 2% loan to build a house. The loan can cover the costs of finishing the building and the purchase of land or its fragment intended for construction. The minimum loan period is 15 years, which allows you to adjust the repayments to your financial situation .
The borrower has two options in the case of detached houses:
In both cases – borrowers willing to take out a 2% loan for a house must prepare the necessary documentation. These are a number of important documents: construction design, building permit, extract from the land register, as well as construction log and cost estimate of construction works. This is where the bureaucratic catch comes in. Detail and diligence in the preparation of documents pays off – it is worth paying due attention to the documentation so that the whole process runs smoothly and without unnecessary complications.
There are also questions about the situation when the investment in the construction of a house began before July 1, 2023, i.e. before the introduction of the “Safe 2% Loan” program. Fortunately for these people, it is also possible to take advantage of this program, under certain conditions. If the total value of the plot and the construction being initiated is within the limit of USD 200,000, future owners have a chance to apply for a 2% loan for a house in the maximum amount – i.e. USD 500,000 or USD 600,000, depending on the family situation. If the total value exceeds this limit – the available loan amounts are USD 150,000 for married couples and couples with children and USD 100,000 for singles.
The question of the possibility of obtaining a loan with a state subsidy for the purchase of a building plot is another important issue. In practice, however, the answer is not clear. If we want to prepare for the creation of a construction site on the plot we have our eye on – Let’s hold off on a 2% loan for a house before all the formalities are completed. In the event that the future borrower wants to purchase a building plot, but no longer has plans to use it, i.e. no construction project or building permit in his name – he will not be able to use the 2% loan to build a house on the selected plot . The act provides for a surcharge only if all issues related to the construction are clearly documented.
As you can see – thanks to the 2% loan program for a house, people dreaming of their own property have a chance to implement their plans in stable, safe conditions. However, you need to remember about careful documentation – otherwise the process will be much more difficult.