The countdown for the My House programme has begun, as next week the submission of applications from the DYPA.

According to information, next Monday, April 3, the submission of applications for low-interest loans will start.

The My Home project

The My House housing programme will provide interest-free or low-interest first home loans to young people aged 25 to 39 years old with income criteria set by the Public Employment Service.

From the My Home programme 500 million budget. euros 10,000 citizens will benefit in the first phase. A condition for receiving the loan will be that the young people must have an annual net income of at least €10,000. The maximum limit is set at €16,000 for a single person and €24,000 for a couple (heating allowance criteria).

The procedure

The application must be accompanied by a number of supporting documents for each of the eligibility criteria. Banks check that the conditions (age limit, income, lack of property suitable for housing) are met for each applicant. If these are met, they shall assess the creditworthiness of the person concerned on the basis of their internal rules. They then decide on the pre-approval or not of the loan and the criteria for the loan within 60 days of the application. The pre-approval is valid for 60 days from the date of its notification to the applicant.

The bank shall inform the applicant of the pre-approval. Then he or she must within the 60-day period notify the bank:

• the requested loan amount (which cannot exceed EUR 150,000).
• the property it intends to buy and its price (which cannot exceed 200,000 euros according to the purchase contract); and
• provide the documents required for the bank to carry out the necessary checks

If the time limit expires without effect, the financial pre-authorisation shall cease to be valid.

If all the necessary supporting documents are submitted in time, then the bank will contact the EBA. EAT will freeze the amount of the requested loan until the final approval or partial approval or rejection of the loan by the bank is completed and include this application in the Programme.

The bank then carries out a legal and technical inspection of the property and notifies the results to the EBA. If the inspection reveals that the property meets the conditions for obtaining a loan, it submits the relevant loan agreement to the EAT. The EBA verifies the information submitted and approves the contract unless and until:

a) the prospective borrower has applied for a loan or has entered into a contract with another bank under the Programme; or

b) the amount entered in the contract exceeds the amount committed or 90% of the purchase contract; or c) the data entered is incorrect.

The signing a contract with the final recipient, the the registration of a mortgage or mortgage note on the property securing the loan; and the disbursement of the total amount of the contract shall be made within 6 months of the approval of the EBA. The above deadline shall be extended by 2 months if the application for registration of a mortgage or lien has been submitted within the six-month period. If these deadlines are not met through the fault of the applicant, the application shall be rejected.

The supporting documents

1. The age of the applicant is proven by a birth certificate or a copy of a copy of the identity card.

2. Family status (e.g. in the case of a single-parent family or a large family) is proved by a certificate of family status issued no earlier than 1 month before the submission of the loan application. In particular, to prove the status of a single parent, the applicant must provide additional supporting documents as appropriate:

• widowhood
• divorce
• dissolution of a civil partnership
• incapacity of the other parent to exercise parental responsibility
• adoption by a single parent, etc.

3. For the determination of the income of the applicants, the data of the Personal Income Tax Return of the last tax year are used. In the case of spouses or cohabiting partners, their family income is taken into account, regardless of whether they file separate returns or one of them applies for a loan.

The supporting documents for this element may be either the Personal Income Tax Return (E1) of the last tax year, or the Statement of Assessment/Invoice of Administrative Determination of Personal Income Tax for the last tax year. Correspondingly, in the case of spouses or parties to a civil partnership, the abovementioned documents shall be submitted by both, regardless of whether they file separate returns or whether one of them applies for a loan.

4. In order to establish whether or not there is a property suitable for their residence, applicants submit the Declaration of Property Data (E9) of the last year and the Certificate of Single Property Tax (ENFIA) of the last year. In the case of spouses or cohabiting partners, the respective documents of the spouses or cohabiting partners shall also be submitted, regardless of whether the application for the loan is submitted jointly or by one of them.

The criteria for inclusion in the My House programme

In the case where the existence of a property is shown by the above documents, the following criteria, which must be met cumulatively, are taken into account in order to determine whether the property is suitable to meet the housing needs of the applicants:

A) The property must have an area equal to or greater than 50 m², which is increased by 10 m² for each family member living with the applicant

B) The applicant has full ownership or usufruct of the property in excess of 50%.

C) The property is located in the same Regional Unit as the applicant's place of work or profession.

D) The property is used for residential purposes.

The submission of the supporting documents is accompanied by a solemn declaration in which the applicant confirms that the information provided is true and complete, that the supporting documents are genuine and that he/she has taken note of the terms and conditions of the Programme, which he/she fully accepts. Banks have the right to request additional supporting documents or to further investigate the creditworthiness of the applicant.