“Safe 2% Credit” Program Expands as More Banks Join Subsidized Loan Initiative

The Polish government’s “Safe 2% Credit” program is set to broaden its reach as more banks join the initiative, offering subsidized loans to first-time homebuyers. Starting on July 3, eligible individuals can apply for the program, with the initial phase launching in two major banks, PKO BP and Pekao SA. Minister Waldemar Buda has announced that agreements are being finalized with an additional eight banks, aiming to provide wider access to the subsidized loan program.

What is included in Safe 2% Credit:

The “Safe 2% Credit” program, established under the Act on State Aid in Savings for Housing Purposes, aims to support individuals looking to purchase their first property. It offers reduced interest rates on loans and provides a housing account through which participants can access housing bonuses from the state budget.

During the first year, there will be no limits on loan amounts or the number of beneficiaries. All individuals who meet the program’s conditions and apply for a subsidy will receive co-financing. The application process can begin in July, extending through November or December.

The significant development in the coming months will be the inclusion of more banks in the program. Only those banks that have reached agreements with Bank Gospodarstwa Krajowego (BGK) can offer the subsidized loans. While PKO BP and Pekao SA are the current participating banks, negotiations with five more banks are near completion, as announced by Minister Buda. He expressed his expectation that, by the end of the year, almost all banks will have joined the program.

To be eligible for the loan subsidy, applicants must be under 45 years old and not have previously owned property. For married couples, at least one spouse must meet the age requirement, and both partners must not possess any real estate. The ownership of a property before marriage disqualifies spouses from applying for the subsidy.

The maximum loan amount for purchasing an apartment is PLN 500,000 for individuals living alone and PLN 600,000 for singles living with a child, informal couples with a common child, or married couples with or without children. This amount includes up to PLN 200,000 as the borrower’s own contribution.
The program places no restrictions on the borrower’s own contribution when building a house. However, the total investment value for Safe 2% Credit program, which includes the loan amount and the borrower’s contribution, cannot exceed PLN 1 million.

Participants in the program must promptly inform the bank of any changes in their circumstances, such as renting or purchasing another property. Failure to do so may require repayment of unjustified subsidies and accrued interest.

By expanding the “Safe 2% Credit” program, the Polish government aims to provide more opportunities for aspiring homeowners to access subsidized loans. The inclusion of additional banks underscores the commitment to supporting citizens‘ housing aspirations while stimulating the mortgage market and the broader economy.