BRATISLAVA, January 7, (WEBNOVINY) — As of January, soft mortgages for the young will become accessible to fewer people. As the average monthly wage in the third quarter decreased from EUR 758 to EUR 750, the maximum level of monthly income for eligibility to get a government supported soft mortgage for young people has declined, too. While earlier, the income of an applicant for this mortgage could not exceed EUR 985.40, as of January this volume has fallen to EUR 975. Demand for the advantageous mortgages could increase if parliament approved the planned change in the income limit for married couples. To be eligible, the applicant’s average gross monthly income can reach a maximum of 1.3-fold the average nominal monthly wage in the national economy, while in the case of a married couple, each of them has to comply with the condition separately. At the December parliamentary session, lawmakers moved to the second reading a draft amendment to the law on banks, which redefines requirements for soft mortgages. As of May 2011, the eligibility to the government supported mortgage should be evaluated based on a joint income of applicants, which is not to exceed 2.6-fold the average wage.
In VUB, mortgages designed for young people make up 44 percent all mortgages extended by the bank in 2010. The bank’s spokeswoman Alena Walterova commented that the proposed revision to the law on banks would make the conditions for eligibility to the advantageous mortgage would be more just.
Soft mortgages are designed for young people not older than 35 years and their provision started in 2007. The average gross monthly income can reach a maximum of 1.3-fold the average nominal monthly wage in the national economy. The percentage rate of the state bonus is determined on the basis of the State Budget Law for the corresponding year. The contribution from the state for this year is 2 percent, while the bank reduces the interest rate by 1 percent. The sum of the state bonus approved is not guaranteed but is set by law every year.
The state contribution is provided for a period of five years. The maximum repayment period is thirty years. These soft interest rates can be provided on a mortgage or its part, the purpose of which is to purchase, build, reconstruct or upgrade local real estate for EUR 49,790.88 at most.
SITA
