APN Subsidised Housing Loans – What You Need to Know
In most conversations about investing money in property, the abbreviation “APN” tends to come up sooner or later. It refers to a Croatian Government housing support measure designed to make buying a home more affordable for Croatian citizens by subsidising part of their housing loan repayments.
Who can apply?
The measure is intended for Croatian citizens under the age of 45 who, together with their spouse, common-law partner or life partner, do not own a house or apartment suitable for permanent residence.
It may also apply to applicants who own only one property suitable for living but are selling it in order to purchase a larger home.
How does the process work?
There are three main parties involved in the application process for a subsidised housing loan:
Your chosen bank
The Agency for Transactions and Mediation in Immovable Properties (APN)
You
The bank providing your housing loan will assess your creditworthiness, while the Agency for Transactions and Mediation in Immovable Properties approves eligibility for the subsidy.
The maximum loan amount eligible for the measure is €100,000, while the subsidy covers at least 30% of the monthly loan instalment for a minimum period of five years.
Your housing loan may be higher than this amount, but the portion above €100,000 will not be subsidised. The loan repayment period must also be at least 15 years.
How much is the subsidy?
The amount of the subsidy depends on the development index of the municipality or city in which the property is being purchased or built.
The subsidy ranges from 30% to 51%, across eight defined development categories, and applies during the first five years of repayment of the housing loan.
What obligations does the subsidy recipient have?
The recipient must register their permanent residence, as well as the permanent residence of all members of their household, at the address of the apartment or house stated in the application.
They must continue living at that address without interruption until two years after the subsidised loan period has ended.
Can the subsidy period be extended?
There are several circumstances in which the subsidy period may be extended:
If the applicant or a member of their household has a recognised disability of at least 50%, the subsidy period is extended by two years.
For every child born or adopted during the subsidy period, the subsidy is extended by two years. An additional one-year extension applies for each child who was already a member of the applicant’s household and was under the age of 18.
APN can be an excellent option worth considering if you are under the age of 45 and meet the eligibility requirements.
Thinking about a subsidised housing loan? Contact us.