The Good Finance program is a program that many young Poles took advantage of in the years 2007-2013. It is estimated that there were about two hundred thousand people.
It was intended for married couples and single parents. His goal was to help buy their own apartment for those who could not afford a mortgage.
The Good Finance loan obtained under the program could be used to buy an apartment in a multi-family building, a cooperative ownership right to a residential apartment, or to build a single-family house.
The funds could also cover the costs of building a new apartment and finance the construction contribution to the cooperative, as well as extend existing properties.
Funding Good Finance was based on the fact that the State Treasury subsidized the loan installments for the first eight years of repayment. The amount of these payments depended directly on the size of the real estate area.
In addition, the program specified the maximum price per square meter of the apartment. It differed depending on the voivodship. The loans were granted by commercial banks that had an agreement with Good Finance Bank.
Can I still use the Good Finance in 2020?
Since its existence, the Good Finance program has helped to buy many apartments. It was a way to stimulate the housing market in the years 2007 – 2013. From 2014 you can no longer use it.
If you are one of the people who decided to take out a loan in 2011, in a moment you will have to face the need to repay full credit installments in the bank.
Until when will RnS beneficiaries receive credit installment subsidies?
If you decided on the Good Finance program, you surely counted for how many years the additional payment will help you pay the debt. Most loans, about fifty thousand, were granted under the program in 2011. Therefore, it is now that many beneficiaries are starting to lose funding.
The State Treasury helped with repayment for exactly eight years from taking out the loan. People who decided to buy a property at the end of its duration will lose their subsidies in 2021.
Therefore, for many of those who have benefited from the Good Finance program, 2020 may bring a significant burden on the household budget.
How much will the loan installments increase after losing the subsidy with Good Finance?
The beneficiaries of the Good Finance program wondered from the beginning how much the installment would increase after 8 years of loan repayment. Today they have to face much higher costs of repayment. Analysts predict that the installments could increase by about thirty – forty percent.
For example, if you took a loan in the amount of about two hundred thousand USD, after the loss of subsidies the repayment installment will increase by two hundred – two hundred and fifty USD a month. This amount may be even higher if the Good Finance Association decides to raise interest rates, which are currently relatively low.
So what installment awaits you after 8 years in the Good Finance program, so it mainly depends on the amount of credit you have chosen.
What to do to reduce your mortgage installment after losing the RnS surcharge?
The loss of a bank subsidy can be a big blow to program participants. Many young families using the Good Finance program were only twenty-five to thirty years old. At present, their household budget is charged with additional cash loans and expenses related to raising children.
However, if you are in this situation, you still have the option to lower your loan installments. Refinancing a family loan is possible if you decide to transfer the loan to another bank.
Changing the bank is an opportunity to negotiate better credit terms. In this way, you can reduce your loan installment from several dozen to even several hundred USD.
What were the rules for joining the Good Finance?
In 2007-2013, about two hundred thousand people benefited from the Good Finance program. The conditions that had to be met did not allow everyone to use it. The size of the premises was a limitation.
It could not exceed seventy-five square meters for apartments and one hundred and forty square meters for single-family houses.
The price of the property was also important. It could not be higher than the amount representing the product of the residential premises and the average conversion index of the replacement cost of one square meter, with the index being 1.4. The premises also had to be located on Polish territory.