Most asp loan payers now benefit from the government’s free interest subsidy. Using HS’s calculator, you can determine how much interest subsidy you would receive based on your loan. Essentially, anyone who has taken out an asp mortgage is eligible for this interest subsidy, as these loans automatically come with a partial interest rate cap. This means that if the total interest rate on the loan exceeds 3.8 percent, the state covers 70 percent of the excess interest.
The interest subsidy remains valid for ten years from the time the loan is withdrawn. Banks automatically reimburse the interest on the loan, and then invoice the support they provide from the State Treasury. The interest subsidy had little practical impact from 2009 until recently due to low interest rates, but as rates have risen, more borrowers are benefitting from this subsidy.
Euribor reference interest rates have been on the rise, causing many loans to exceed the 3.8% limit that triggers the interest subsidy. As interest rates continue to fluctuate, more borrowers are likely to qualify for this assistance. In the past year, more than four million euros in interest subsidies have been paid to asp borrowers, benefitting over 47,000 loans totaling 4.3 billion euros.
To open an Asp account, the individual must be between 15 and 44 years old and have not previously owned an apartment. Deposits must be made for at least eight calendar quarters, with a minimum savings period of about a year and a half. The annual tax-free deposit interest is one percent, with an additional interest rate of 2-4 percent depending on the bank. Once at least ten percent of the apartment’s purchase price is saved, the bank may grant an asp loan with a government guarantee.