Is the "2% Loan" programme a good choice?

The "2% Loan" programme, aimed at people who want to buy a flat, will probably start in July 2023. Such a cheap loan has many advantages, but the programme will not cover everyone interested in buying a new property. We look at the key features of the "2% Loan" and the conditions attached to it.

What is the "2% Loan" programme and who is it for?

The situation for potential borrowers is currently unenviable, because flat prices are high and access to loans is very restricted. The programme meant to change this situation is the "2% Loan", which is to come into force in the third quarter of 2023, more precisely in July. The key feature of this programme is a fixed interest rate of 2% for a period of 10 years. In addition, the minimum down payment is only 5%, and the maximum repayment period of the mortgage is 30 years. The programme is open to people who:

• want to buy their first property, that is, a house or flat (and not another one);

• are under 45 years of age;

• are creditworthy.

It should also be noted that the banks taking part in the programme will be those that sign agreements with Bank Gospodarstwa Krajowego. This means that the availability of low-interest loans may also be a limitation, but time will tell whether this really is a problem or not.

Are there any restrictions?

It is worth remembering that the "2% Loan" programme has certain restrictions, relating mainly to the value of the property. Single people can buy a house or flat worth up to 500 thousand PLN, and married couples and single parents up to 600 thousand PLN. However, the down payment, which may be up to 200 thousand PLN, is not counted towards the limit. In total this gives 700 or 800 thousand PLN for the whole flat. Such an amount will allow you to buy a property in practically any Polish city.

Is it worth taking advantage of the programme and buying a flat?

It is worth remembering that in the case of the Safe 2% Loan programme (Bezpieczny Kredyt na 2%), the bank's margin, which is a separate element, raises some doubts. According to government calculations, this margin is around 0.85%, but in reality it is currently much higher. The second problem may be the banks' attitude towards the government's decision. A fixed interest rate for 10 years need not be advantageous at all, because a lot depends on market indicators, especially interest rates. It is also not known what exactly will happen to the instalments after 10 years. For now, however, it can be assumed that at a time of high interest rates on loans, the "2% Loan" seems to be an attractive option for people who do not own a property.

Remember that an estate agent – an expert with knowledge of the whole market, clients' needs and the rules of financing – will certainly help you buy a flat.