One of the priorities of the budget for next year is demographics, and the availability of housing for households with children is seen as an important factor contributing to the improvement of the demographic situation, writes Diena.
Despite the fact that several loan programs are already available for this target group, including those guaranteed by the financial structure "ALTUM", the Association of Large Families proposes to expand the opportunities for obtaining housing benefits.
Funding for housing acquisition is allocated from different sources depending on the target group. The first program is the restoration or construction of social housing, which municipalities use for residents with the lowest incomes. The second is the construction of low-rent housing intended for families with children and young professionals. The third is the improvement of energy efficiency in existing buildings. Additionally, there are state guarantee programs in place.
At the end of October, "ALTUM" gave the "green light" to a new mortgage lending program aimed at issuing more than 3,000 loans outside of Riga and the Riga region. So far, 44 applications have been received. The initial funding volume is €25.8 million, with an additional €80.3 million available. Program conditions: loan amount - up to €74,000, term - up to 30 years, borrower's age at the time of full repayment - no more than 65 years.
As explained by the parliamentary secretary of the Ministry of Economics, Jurģis Miezainis (SCP), at a meeting of the Saeima subcommittee on reducing inequality, loans remain expensive in the regions, and both the banking and non-banking sectors have restrictions that hinder young families from taking out loans. Therefore, special attention is paid to "ALTUM", which accounts for about 50% of the loan portfolio.
"It is inappropriate for the state to take on a significant portion of the risks by providing guarantees everywhere. But to change the situation, it is necessary to develop competition and the market - this is what we are working on," noted Miezainis.
To receive support, there must be at least one child or confirmed pregnancy in the family. The duration of the guarantees is up to 10 years, and the maximum transaction amount is €300,000. Currently, support has been provided to more than 33,424 families, with a total guarantee amount of €280 million and a total volume of issued bank loans of €2.7 billion. For households with average incomes, the guarantee volume ranges from 5% to 50% of the loan amount, depending on the number of children, the region where the housing is located (in Riga/the metropolitan area or in other areas), and the energy efficiency of the building. Requirements for young professionals: a secondary vocational or higher education and an age of up to 35 years.
