The announcement was made by the Minister of Finance, after the Council of Ministers, which focused on approving measures that aim to mitigate the effects of the crisis on housing.
Who can benefit?
- All credits contracted until March 15, 2023, with a residual term equal to or greater than five years;
- Borrowers of personal and permanent housing loans with a variable interest rate or mixed rate in a variable rate period;
- Contracts that have been concluded as part of a credit transfer operation, regardless of the date of conclusion.
How will it be applied?
For two years, families will be able to ask the bank to make a proposal for a constant instalment that is lower than what they currently pay. This reduction is achieved by ensuring that during that period the interest rate does not exceed 70% of the six-month Euribor.
After these two years, in the following two years, the benefit assumes its 'normal' value (with the index at the time fully reflected). If interest rates reduce during the two years, the borrower can return to the normal contract. If they increase again, the borrower can return to this model.
When will the deferred amount be paid?
It will begin to be paid four years after the end of the benefit fixation period. The payment will be spread over the remaining maturity of the loan and the difference can be amortized in advance, without any commission or charge.
Does joining change the loan?
No. The loan conditions (spread, maturity) remain unchanged, with the amount of the reduction being deferred. In other words, the current value of the loan remains unchanged and the safeguard clause guarantees that the amount owed never increases.
When can families apply?
Requests for review of the provision can be submitted from November 2 (or after the date of publication of the diploma if this occurs later) and until the end of the 1st quarter of 2024.
Banking institutions have 15 days after receiving the request to present the conditions to the customer, and the customer has 30 days after presenting the conditions to respond.
In addition to the reduction in instalments, the Government also announced new rules for interest subsidies that allow more families to benefit from the measure. According to estimates, around 200 thousand families will be able to benefit from the interest subsidy, which will now be calculated on the value of the index above 3% and no longer takes into account the income bracket. Furthermore, the annual limit goes from 720 euros to 800 euros.
Together, the two measures could mean savings of more than 150 euros per month, depending on the family loan.