When buying a larger first or second home in the city, you can get help – when and how to use it.

The grant procedure itself can be confusing, therefore Delphi Together with specialists from the Ministry of Social Security and Labor (SADM), explain what individuals and families can expect from what support. Specific cases are provided at the end of the article.

It is true that it is important to point out that this support, although similar, differs from another measure: the Housing Credit for the purchase of a first home with a state economic incentive, which focuses on young families planning their first homes in the regions. The latter is provided only in certain areas and only to people under the age of 36. You can read more about it here.

At that time, residents of any age and anywhere in Lithuania are entitled to a partially repaid home loan. Under this measure, the income of a person or family is evaluated. However, even if you meet the income criteria, this right does not mean that you will receive support. Those who wish to receive the right to financial support from the state (subsidy) must meet other conditions.

“It is important to note that establishing an individual or family’s right to a partially repayable home loan does not necessarily result in an immediate right to a subsidy to cover part of that loan or to cover an initial contribution, such as the right to se they have established additional requirements ”, emphasizes Aida Žemaitytė-Budnikienė, chief specialist of the Department of Communications of the Ministry of Social Affairs.

Below is information about when a person or family receives the right to a partially repayable mortgage loan and when they receive right to subsidy, that is, it receives financial support.

It is important to note that the examples provided are only preliminary, for specific cases it is advisable to contact the municipality where you have declared your place of residence. The specialists will examine your situation and advise you on what to do in a particular case.

Who is entitled to the measure

Individuals and families (but not yet supported) who meet one of the following conditions are entitled to a partially repayable home loan:

1. whose assets and income declared for a calendar year do not exceed the amounts of income and assets established by the Law of Monetary Social Assistance to the Disadvantaged (see these amounts HERE or below);

2. buy your first home in Lithuania;

3. You have not owned a home in the last 5 years and have not yet used state support to purchase your first home;

4. You own or have owned a home with a useful area per person or family of less than 14 square meters in the last 5 years, or the existing home, regardless of its useful area, is physically depreciated by more than 60 percent. penny;

5. A person with a disability or a family with a disability owns a home that is not adapted to the needs of the disabled. Support is provided only for homes owned by a disabled person.

Based on these criteria, residents who purchase the first and second largest homes are entitled to a partially repaid state home loan (conditions 2 and 4).

What are the income and property requirements?

As mentioned above, applicants income and assets held must meet certain requirements. In 2021, the following criteria were established:

• the net annual income (“in the hands”) of a person without a family cannot exceed 13,568 euros and assets cannot exceed 16,512 euros;

• net income of a family of two or three people (“in the hands”) – 18,944 euros, assets – 33,536 euros;

• Net annual income (“in the hands”) of a family of four and five: 22,784 euros, assets: 44,672 euros;

• If the family consists of six or more people, it is estimated that the annual income (“in the hands”) of one person should not exceed € 3,840 and assets per person should not exceed € 10,624.

Although a person or family meets at least one of the five criteria mentioned above (entitlement to a home loan repaid by the state), this does not mean that the home will receive state assistance immediately when purchasing a home. That is, you only acquire the right to claim the subsidy, but you have not received it yet.

When a grant is awarded

Grant The state-repaid portion of the home loan is paid to borrowers who belong to one of the following groups:

1. people under 36 years of age or their families have been left without parental care (care);
2. families raising three or more children or children in permanent custody (care);
3. disabled people or families with disabled people;
4. young families (up to the age of 36) raising one or more children and families in which one of the children’s parents has died.

According to this procedure, in some cases age criteria also appear (groups 1 and 4). The age of applicants is not limited to large families with three or more children (case 2) and to families with disabilities or with disabled people (case 3).

Who can expect more support?

The biggest support: 20 percent. Loan values: can be expected by people who are in the first three groups, that is, people who have been left without the care of their parents, as well as families raising three or more children (or adopted children), disabled or families with the disabled.

In the fourth case, young families (up to 36 years of age) raising one or more children and families in which one of the children’s parents has died, 10%. the amount of the partially repaid home loan (or the balance of this home loan) provided by the state.

The amount of home loans partially repaid by the state will not exceed:

• 53 thousand. EUR – for a person without family;
• 87 thousand. for a family of two or more people;
• 35 thousand. EUR for the reconstruction of owner-occupied dwellings, regardless of the person’s marital status.

However, the home you buy can be more expensive.

Who, when and what support to expect

SADM, pay Delphi discussed when a family or individual can qualify for a state-reimbursed home loan and when they will receive a subsidy.

For the sake of clarity, Delphi The examples provided are limited to the city of Vilnius and the maximum allowable income according to which the support would belong.

A 27-year-old man buys his first house in Vilnius. a person with an annual net income (“in the hands”) of 13 thousand. EUR.

According to the example provided, 27 m. a person who lives to age 17 is entitled to a home loan partially repaid by the state. However, entitlement to the subsidy on part of the publicly repaid home loan balance may be acquired at a later stage when one of the following three criteria is met:

– when the person marries and fulfills the concept of a young family with at least one child (10% subsidy);

– when a person marries and has three or more children (20% subsidy);

– if the person becomes disabled (subsidy of 20%).

This means that at the age of 27, but has not yet started a family, a person can apply to the state for partial credit compensation, but will not receive immediate support. At the same time, most likely, you will apply for a part of the credit from the bank and take it, for example, for 30 years. That person can start a family and raise one or two children after age 5, in which case they already meet one of the requirements to qualify for the subsidy and receive 10%. state support.

The first house in Vilnius is bought by a family of two (without children), age – 32 years, annual income of both (in their hands) – 18 thousand. EUR.

According to the example given, a family of two (not raising a child (ren) when each of the spouses is 32 years old) is entitled to a home loan repaid by the state. However, a family may be eligible for a subsidy to pay off part of the balance on a partially repaid home loan at a later stage when it meets one of the following criteria:

– by having at least one child, until each of the spouses is 36 years old (10% subsidy);

– when you have three or more children (20% allowance);

– if at least one member of the family becomes disabled (subsidy of 20%).

The first house in Vilnius is bought by a family of three (1 child), age – 37 years, annual income – 18 thousand. EUR.

According to the example given, a family of three is entitled to a partially repayable home loan from the state when each of the spouses is 37 years old. The family may be eligible for an allowance to pay the portion of the home loan balance repaid by the state later, if one of the following conditions is met:

– when you have three or more children (20% allowance);

– if at least one member of the family becomes disabled (subsidy of 20%).

In Vilnius, the first or second largest home is bought by a family of four (two children), age – about 40 years, annual income – 22 thousand. EUR

According to the example given, a family of four, when each spouse is in their 40s, is entitled to a home loan repaid by the state. However, a family may be entitled to a subsidy to pay off part of the balance of a partially repaid home loan at a later stage when one of the following conditions is met:

– when you have three or more children (20% subsidy);

– if at least one member of the family becomes disabled (subsidy of 20%).

In this case, a family with two children could already receive an allowance after having a third child.

It is important to note that the examples provided are only preliminary, for specific cases it is advisable to contact the municipality where you have declared your place of residence. The specialists will examine your situation and advise you on what to do in a particular case.