First Home state programme launched in Moldova

Chisinau, 21 March /MOLDPRES/ - The First Home programme was launched today. Thus, people willing to buy their own dwelling through this programme will be able to submit applications on financing as of 26 March. “We want a larger number of low-income citizens to have possibility to buy dwellings, so that young people edify their future at home,” Finance Minister Octavian Armasu has said.

The minister noted that five banks had showed interest in participating in this programme. Decision-makers have reached an agreement with three of them, Moldindconbank, Victoriabank and Moldova-Agroindbank, on the reception of applications starting from 26 March. Also, a website was launched, Prima Casa, (First Home), which provides more information about this programme, including a computer which allows each applier for loans to estimate the payments he/she is to bear, depending on the cumulative income the beneficiary and his/her first-degree relatives, i.e. the parents, have.        

By the launch of the programme, the government will help young families, who want to purchase a dwelling and do not have enough money, to borrow mortgage loans through the increase of the repayment period for these loans, partial guaranteeing of the loan by the state and diminution of the initial participation of the beneficiary when buying the dwelling. Also, the limiting of the bank’s commissions is envisaged. In the next two years, at least 2,000 young people will be able to buy a dwelling within the First Home governmental programme, the Finance Ministry has earlier said.   

Among the most important conditions, there are the dwelling’s acquisition price, which should not exceed one million lei, the buyer’s own initial participation with at least ten per cent, 90 per cent accounting for the bank’s loan and the loan’s repayment period of up to 25 years. The state will guarantee about 50 per cent of the sum of the loan provided. Young people would save at least 200,000 lei in those 25 years of the credit, than if they borrow a loan outside the project, more economic experts said.  

Persons aged up to 45 years, citizens of Moldova, who work in the country and have an official salary will be able to benefit from the state’s support within the programme. Another criterion of eligibility is that they should not have a dwelling and should not benefit from another mortgage loan. The programme’s beneficiary commits not to sell the dwelling purchased in the first five years after the date of owning it.   

A guarantee fund worth 50 million lei has already been provided for in the state budget for 2018. This sum covers about five per cent of the mortgage loans which might be provided through the First Home governmental programme this year. The implementation of the programme will be carried out through the Organization for Small and Medium Enterprises Sector Development.  

The government has earlier also approved amendments to a string of laws, which see that the tax for the authentication of the agreements on sales and purchase of houses and flats within the First Home state programme will be of 0.1 per cent of the contract’s price. Young people will pay 50 lei for the authentication of mortgage contracts.   

The Democratic Party of Moldova informed that work was carried out also to extend the programme, so that, in several months, the government may come up with new facilities, especially for civil servants. Through these facilities, decision-makers are willing to encourage them to remain in the budgetary sector. At the same time, the extension of the First Home programme will represent an additional reason for young people willing to get employed in state’s institutions.  

(Reporter V. Bercu, editor L. Alcaza)