The Cabinet approved the concept of the state program “First House” that is designed to facilitate the access of private individuals, especially young families, to home loans that are partially guaranteed by the state, IPN reports.
Through the agency of the program, applicants will be able to purchase apartments and homes on Moldova’s territory that were finished and made available for use before the submission of the application. Their price must not exceed 1 million lei. The beneficiary must pay an initial installment of 10% of the price.
The loan for the “First House” will be provided by commercial banks and will be repayable in Moldovan lei in 25 years. The interest rate will consist of the average weighted interest rate on loans repayable in six to 12 months, communicated by the National Bank of Moldova, with a margin of up to 3% and an annual guarantee commission of 0.5% of the balance of the state guarantee that will be issued by the Organization for the Development of Small and Medium-Sized Enterprises (ODIMM).
The program is open to Moldovan citizens younger than 45 who work and have official incomes, who do not own a home and do not have unpaid home loans.
The beneficiaries will be able to sell the purchased home within the first five years only if they pay off the mortgage. Later, they could do it with the consent of ODIMM and the bank that released the loan.
The Ministry of Finance was instructed to work out all the regulations needed for implementing the program so that these are approved.
In the same meeting, the Cabinet decided that the employees of the General Inspectorate for Emergencies of the Ministry of the Interior will benefit from company apartments that will be built within a public-private partnership project on a publicly owned plot of 0.47 hectares. When the building started to be designed, about 500 families of employees of the given inspectorate didn’t have homes. Of these, 80% were newly formed families.
