Finance Minister Ladislav Kamenický. (source: TASR)
The government is to help people repay their mortgages by providing them with a monthly contribution from next year.
People who earn up to 1.6 times the average wage, currently equivalent to €2,086, will be entitled to the support. If two people share the mortgage, the limit will be twice this income level, the Denník N daily writes.
The contribution will be calculated from the difference between the original and the increased monthly instalment at the same bank. It should amount to 75 percent of this difference, and no more than €150 per month. A mortgage payer can receive no more than €1,800 a year.
The same conditions should apply to employees and the self-employed.
The Finance Ministry, which is justifying the measure by pointing to surging interest rates, estimates that the state will spend €72 million on the scheme in 2024. The National Bank of Slovakia, the country’s central bank, claims that the instalments of most mortgage payers increased by no more than €100 per month. Moreover, loan repayment data suggests, the NBS added, that there is no imminent problem meeting mortgage repayments.
Of all the 350,000 mortgages scheduled to refix by the end of 2025, more than 230,000 households will see their instalments increase by less than €100, and will thus be entitled to a contribution of no more than €75, Denník N points out.
People can apply for the contribution at labour offices. How much money they can get will depend on their tax declaration and their mortgage. Banks should provide information on mortgages and calculate the contribution, which they say is unfortunate as there is little time to prepare for the change.
The law should come into effect in January 2024. People could receive the first contributions as early as in February.
Each person can claim for only one loan agreement and one property in Slovakia. The property in question cannot be rented out. The contribution should not be paid for a mortgage that is transferred to another bank, the daily notes.
