Mortgage Subsidies – What Forms of Support Does the State Offer?

Introduction – What are mortgage subsidies?

Mortgage subsidies are a form of financial support offered by the state to people taking out loans to purchase property. Under these programmes the government covers part of the loan costs, which makes instalments easier to repay and reduces the financial burden on borrowers. Over the years Poland has run several such initiatives, the most popular being “Family on Its Own” and “Flat for the Young”. Their aim was to help young families and singles buy their first home.

In 2024 the government continues to offer support, although in a slightly different form. After the expiry of the “Safe 2 % Loan”, new programmes were created to help Poles in difficult financial conditions gain access to housing. These initiatives include a variety of assistance such as loan subsidies, support for people without a down payment and help for borrowers in difficult life situations.

Support programmes in 2024

In 2024 the government launched several programmes designed to make it easier for Poles to obtain mortgages. The most important are:

• “Housing Kick‑Start”: the new scheme replacing the “Safe 2 % Loan”, aimed at first‑time buyers. It offers loan subsidies and preferential financing conditions.
• Borrower Support Fund: targeted at people in financial difficulty who are struggling to pay their mortgages on time.
• “Housing Without a Down Payment”: dedicated to those who lack savings for a down payment but have sufficient creditworthiness. It allows a mortgage without own contribution and includes a so‑called “family repayment” when the family grows.

These programmes seek to improve housing availability and support young families in purchasing their own property. Each offers different conditions so assistance can be tailored to individual borrower needs.

“Housing Kick‑Start” – conditions of the new programme

The “Housing Kick‑Start” programme is a response to the ended “Safe 2 % Loan”. It supports singles and families buying their first home by providing loan subsidies and preferential repayment terms, which depend on household size and income.

Participation requirements:

• Singles or families must not own another residential property, with certain exceptions for large families.
• The single applicant must be under 35; no age limit for families.
• Income must fall within specified limits that vary by household size.

The programme may also offer zero‑interest loans for large families, significantly reducing monthly instalments. Note that it is still in the draft phase and details will be finalised in 2024.

Borrower Support Fund – how to obtain help?

The Borrower Support Fund (FWK) targets people who have trouble repaying their mortgages. It provides temporary financial assistance to those in difficult life situations, e.g. job loss or illness. Aid is granted as an interest‑free repayable loan to cover mortgage instalments and can be repaid on preferential terms.

Eligibility criteria:

• The borrower must demonstrate inability to make regular repayments.
• The maximum support is 72 000 PLN, payable in instalments over up to 36 months.
• The loan is interest‑free and repayment starts two years after the support period ends.

The fund helps prevent people from losing their homes due to temporary financial setbacks and is especially useful during economic downturns.

“Housing Without a Down Payment” – support for young families

This programme is intended for first‑time buyers who lack savings for a down payment required by banks. It allows them to obtain a mortgage without own contribution.

It also offers a “family repayment”: part of the loan is written off when a second or subsequent child is born. For example, the birth of a second child can reduce the loan by 20 000 PLN, while the third and each next child can cut it by up to 60 000 PLN.

Who can benefit?

• People without a down payment but with sufficient creditworthiness.
• Targeted at young families but singles may apply.
• The basic guaranteed loan amount is 100 000 PLN and may be higher for large families.

The scheme seeks to increase housing accessibility for young families and singles who often struggle to save but can afford mortgage instalments. The “family repayment” further encourages family growth.

What are the benefits of mortgage subsidies?

Subsidies offer many advantages that can significantly affect young borrowers’ finances:

• Lower loan costs: preferential interest (even 0 % for large families) means paying only principal during the subsidy period.
• Removal of down‑payment barrier: programmes like “Housing Without a Down Payment” let buyers enter the market sooner.
• Support in crises: the Borrower Support Fund prevents loss of housing during temporary hardships.
• Pro‑family incentives: the “family repayment” reduces debt when the family grows.

Thus, subsidies are not only a financial tool but also a key element of housing policy aimed at improving living conditions for young families.

Who can apply for subsidies?

Eligibility varies by programme but generally includes:

• Young families starting their careers without savings.
• Young individuals (singles or couples) without property who meet age and income limits.
• Large families eligible for preferential terms and “family repayment”.
• People in financial distress who can seek help from the Borrower Support Fund.

Applicants must satisfy income and age thresholds and demonstrate creditworthiness.

Concluded subsidy programmes – what has changed?

Earlier initiatives such as “Family on Its Own” (interest subsidies, ended 2013) and “Flat for the Young” (MdM) (down‑payment subsidies, ended 2018) helped many buy their first homes. Their expiry created a need for new schemes.

Current programmes like “Housing Without a Down Payment” and “Housing Kick‑Start” address today’s market needs with more targeted support, greater focus on large families and removal of down‑payment barriers.

9. Summary

Mortgage subsidies remain a vital tool for helping young people and families buy their first homes. In 2024 schemes such as “Housing Kick‑Start” and “Housing Without a Down Payment” provide preferential loans and reduce purchase costs. The Borrower Support Fund safeguards borrowers in hardship, preventing loss of housing.

While older programmes have ended, new solutions better match current challenges. Government subsidies continue to play a central role in improving housing availability in Poland, and their flexibility ensures broad accessibility.