How to obtain financing for the construction of a house?

Building a house is one of the most important and often the most expensive undertakings in life. It requires careful planning, but equally important – adequate financial security. Where to get funds to finance the construction of a house? The options are varied, ranging from your own contribution, through a loan, to a variety of subsidies. Let’s check what all the options entail.

Table of contents

• Home Construction Financing Options
• The most common source of financing for building a house – a mortgage loan
• What subsidies for building a house can be obtained?
  • “Clean Air” Program
  • “My Electricity” program
  • “My Heat” program
  • Regional and local programmes
• Financing the construction of a house — summary

Home Construction Financing Options

When you know what the approximate construction costs will be, you can proceed to choose the most advantageous financing option. The available options include:

• Own savings – The simplest way to finance the construction of a house, based on the use of your own funds. This is an option that does not burden the budget with additional costs related to the loan. However, given the rising prices, it may be difficult to implement. Therefore, most often, in addition to one’s own contribution, loans and subsidies are used.
• Mortgage– Mortgage loans offer the possibility of spreading the costs over many years, which makes it possible to implement the investment even with limited own funds. It is worth paying attention to the interest rate, commissions and additional costs, such as credit insurance.
• Grants and subsidies – There are many programs available in Poland that can help you finance the construction of a house. For example, programs such as “Clean Air” offer subsidies for the construction of energy-efficient houses, which can significantly reduce construction costs.

The most common source of financing for building a house – a mortgage loan

A mortgage is a type of long-term loan that is secured by a mortgage on the property. In the context of building a house, a mortgage can be disbursed in stages, according to the progress of construction work. The interest rate on such a loan depends on many factors, such as own contribution, loan period or stability of the borrower’s income.

What subsidies for building a house can be obtained?

In addition to a mortgage, people planning to build a house can take advantage of various forms of financing that are designed to support investments in modern, energy-efficient buildings. In Poland, there are both government and local government programs that offer financial support for this purpose. However, it is worth knowing that they may involve a lot of formalities and conditions to meet.

“Clean Air” Program

One of the most popular subsidy programs is “Clean Air”, which aims to reduce pollutant emissions through financial support for the construction of energy-efficient houses. The program offers subsidies for investments such as the installation of mechanical ventilation with heat recovery (recuperation) or photovoltaic micro-installations. The maximum amount of support can be as much as PLN 37 thousand.

“My Electricity” program

The “My Electricity” program is another financial support addressed mainly to people planning to install photovoltaic systems. The subsidy can cover up to 50% of the investment costs. The program also includes co-financing of energy and heat storage, which makes it an attractive solution for people who want to invest in modern energy technologies.

“My Heat” program

“My Heat” is a program supporting the purchase and installation of heat pumps in newly built single-family houses. Individuals can count on co-financing of up to 30% or up to 45% of eligible costs, but the amount of support cannot exceed PLN 21 thousand. The program is aimed at owners of new buildings that meet increased energy standards.

Regional and local programmes

In addition to the nationwide “Clean Air” program, in many regions of Polish there are also local programs that offer financial support for energy-efficient or ecological houses. An example is the subsidy programs offered by the provincial funds for environmental protection and water management. These programs often support projects related to the installation of photovoltaic systems, heat pumps, as well as the construction of domestic sewage treatment plants.

Financing the construction of a house — summary

Obtaining financing for the construction of a house requires a thorough analysis of the available options. A mortgage loan remains the basic financing tool, but thanks to subsidy programs such as “Clean Air”, “My Electricity” or “My Heat”, it is possible to significantly reduce investment costs, especially in the field of energy-saving technologies.

However, it is important to carefully read the conditions and requirements of individual programs and to prepare the documentation properly in order to be able to use the available funds to make your dreams of having your own home come true.

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