The private sector employees can also apply to the “First House” program, IPN reports, quoting the regulations concerning the provision of compensations to salary earners from the private sector who want to take part in the program, which were approved by the Cabinet.
The formula for calculating the compensations derives from the highest possible price of a dwelling, of 600,000 lei. The state will gradually compensate up to 50% of the basic sum of the home loan, which does not include related interest rates, the guarantee commission and other bank payments. The compensation is provided monthly, since the approval of the application for financing until the end of the home loan repayment period.
If the beneficiary from the private sector is a parent with children, the state will compensate up to 100% of the basic sum of the home loan.
The money for the purpose will be earmarked annually in the state budget. A sum of 20 million lei was allocated for the purpose in 2019. This sum will be adjusted annually depending on the applications received from the public authorities and the available budget resources.
To be eligible, the applicants should meet the following conditions: the cost of the home should not exceed 600,000 lei; they should make an own contribution of at least 10% of the purchase price of the home. The rest of the home loan and the related costs will be paid within 25 years.
The governmental program “First House” was launched on the initiative of Prime Minister Pavel Filip on March 26, 2018. Until the end of the previous month, 2,282 young people and young families purchased their own homes through this program.
