Young families can apply to the state for a housing loan starting today

Prague - Young families up to 36 years old can apply from today for a state loan of up to two million crowns for the reconstruction or purchase of new housing. The interest rate is one percent with a guaranteed term of 20 years, and in exceptional cases, the maximum repayment period is 25 years. The State Housing Development Fund will process applications in the order they are received. For this year, 650 million crowns is allocated for loans, with plans for one billion per year in the following years. The state loan can be combined with a mortgage, but it cannot be used to repay the mortgage.

According to the proposal from the Ministry of Regional Development (MMR), which the government approved in June, the state will lend up to 300,000 crowns for the modernization of an apartment. The maximum amount for buying an apartment is 1.2 million crowns, and for the construction or purchase of a family house, the highest possible loan is two million crowns. The loan will be provided for a maximum of 80 percent of the actual costs of construction or purchase, including the purchase price of the land for family houses.

The maximum repayment period is set at ten years for modernization, and up to 20 years for the purchase or construction. In exceptional cases, such as serious illness, the repayment period is extended to 25 years. A bonus is a deduction of 30,000 crowns from the principal for each born or adopted child during the duration of the loan relationship.

Childless couples or registered partners can also apply for the stated loan. Having a child under 15 years old is a requirement for applicants who are not married.