Under the new state mortgage program Prima Casă Plus (First House Plus), the maximum loan amount will increase to 2.5 million lei, the term - up to 30 years, the share of state guarantees will increase and the list of beneficiaries will expand - Dorin Recean.
Prime Minister said this while presenting at a news conference on Tuesday the possibilities of the new Prima Casa Plus program, developed by the government at the initiative of President Maia Sandu. Dorin Recean said that the new Prima Casa Plus program will have 5 differences from the previous Prima Casa program, and these changes include: expanding the list of beneficiaries, increasing the maximum loan amount, increasing the share of the state's loan guarantee, increasing the loan term and simplifying the procedures of accessing the program. Prime Minister said that, in particular, the expansion of the list of beneficiaries means that the Prima Casa Plus program will be open to the representatives of free professions: lawyers, bailiffs, cab drivers, artists, in other words, all those who can prove that they have a guaranteed income. At the same time, the maximum amount of credit for housing purchase will be increased from 1 million to 2.5 million lei. The maximum loan term will be increased from 25 to 30 years, in order to have a longer repayment period. Also, the share of state guarantees on such loans will be raised from 50 per cent to 70 per cent for dwellings bought outside Chisinau. According to Prime Minister, this is done in order to encourage the purchase of housing within the program and to relieve the pressure on housing prices in the capital. At the same time, in Chisinau, the share of state guarantees on loans will be increased from 50 per cent to 65 per cent for the purchase of dwellings commissioned not more than 10 years ago. Prime Minister also specified that for those who are already beneficiaries of the Prima Casa program, the Prima Casa Plus program will offer the possibility of re-crediting, changing the lender, switching from one bank to another and changing the credit conditions. At the same time, those who own a house of less than 50 square meters can apply for a new loan within Prima Casa Plus to improve their conditions and buy a larger house. Also, the procedures for accessing this state mortgage program will be simplified, the processes will be digitized, and many certificates that were requested previously, above all from the Public Services Agency, will be excluded. “The purpose of the new Prima Casă Plus program is to help families, to create better conditions for them to live at home. It is an investment in our future, in young families,” Dorin Recean said. According to him, the Prima Casă Plus program will be available from July. Until then, the Cabinet will complete all the necessary processes so that citizens can go to the bank and access this program. “The government creates conditions for a better life, so that citizens continue to create families and make plans for the future in our country,” Prime Minister said. He specified that the state's investments under the Prima Casă program amounted to 160 million lei per year, while under the Prima Casă Plus program they are expected to double in the next period, given the increase in the maximum amount of loans and the term of their issuance. Dorin Recean also stressed that the Prima Casa Plus program is meant to help citizens buy a house. Also, the government will put at the disposal of construction companies a series of sites, plots of land in Chisinau and outside the capital, so that they could build apartment houses, thus reducing the pressure on prices, given the increase in the housing supply. Prime Minister also specified that the interest rate on the Prima Casa Plus loans will be about 7.63 per cent per annum, which is lower than the rates on commercial loans. He noted that citizens will be offered a cheaper and long-term loan, which will be partly guaranteed by the state. Dorin Recean said that the authorities will also try to help those families from the Prima Casa program who have been affected by the crises of the last years, including the increase of interest rates on loans, the energy crisis and need assistance. // 28.05.2024 - InfoMarket.
