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The government has reduced the margin for guaranteed loans provided under the state mortgage program Prima Casa (“First House”)

The government has reduced the margin for guaranteed loans provided under the state mortgage program Prima Casa (“First House”)

According to the amendments and additions to the Regulation on the implementation of the “Prima Casa” program, the maximum margin to be applied in 2019 for loans guaranteed by the state under the this program has been reduced from 3% to 1%. As the Ministry of Finance noted, the government reduces the burden on program participants with this measure. At the same time, commercial banks participating in the program are limited in raising the interest on the loan. Another change to the provision concerns the beneficiaries of the program - they can now also be people who in the last 12 months have owned a housing of no more than 9 square meters per each family member. Previously, applicants should not have owned property during the specified period in order to qualify for the program. Another change concerns the package of documents that the state requested from the applicants. Now it will not be necessary to provide the work book, a certificate issued by the State Tax Service, as well as extracts from the Real Estate Register. Also, it has been reduced the period of execution of guarantee contracts - from 10 to 5 working days. Let us recall that the Prima Casa government program was launched on March 26, 2018. The program provided loans to over 2.1 thousand beneficiaries in the amount of over 1 billion lei. The program provides benefits to families with children. The state covers 10% of the cost of an apartment for families with 1 child, 25% - for families with 2 children, 50% - for families with 3 children, and for those with 4 or more children, the government repays the entire amount of the mortgage loan, the family will have to pay only the interest on the loan. 5 banks are participating in Prima Casă: Moldova-Agroindbank, Moldindconbank, Victoriabank, Mobiasbancă-Groupe Societe Generale and Eximbank. Detailed information about the program can be found at www.primacasa.gov.md. // 25.04.2019 - InfoMarket.

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