The recently adopted bill for housing loans aimed at young people is set to take effect in March, offering a chance for first-time buyers to purchase their first residential property under favorable terms. The program is designed to make home ownership more accessible, affordable and simplified for young individuals.
However, the bill also sets clear guidelines for loan beneficiaries. For the first six years of repayment, recipients are required to live in the purchased property and are prohibited from renting or selling it during this time.
Loans can only be granted for properties not owned by the borrower’s spouse, relatives, or direct descendants, ensuring that the property remains solely for the buyer’s use. If any violation occurs, such as renting out or selling the property, the beneficiary will lose their right to the interest subsidy and must repay the state the subsidy received, with added interest.
The repayment period for these loans can last up to 40 years, with a maximum age limit of 70 at the time of the final payment. Additionally, a 12-month grace period is allowed, during which only interest payments are due.
Loans will be issued in dinars, pegged to the euro, and offer subsidized interest rates to help young people on their path to homeownership.
