A start-up loan is simply a need-tested loan scheme that will help households with weak finances, such as youngsters in the establishment phase, families with children, single parents, disabled people and other disadvantaged households, be able to obtain a sober and suitable home. It is up to the individual municipalities to grant such loans.
The initial loan shall be offered on the basis of the Honest Bank’s interest rate terms. The municipality has the opportunity to increase the Honest Bank rate by up to 0.25% to cover administrative costs, or offer more lenient terms without affecting the loan terms between the municipality and the Honest Bank.
Requirements to get a starting loan:
You need to set up a home or change your home now, that is, the current housing situation is not satisfactory
• The home you buy is sober in terms of how many people will live in the home, and is reasonable in relation to the price level on site.
• The housing is not more expensive than you can manage to pay the bout money over time and still have the necessary funds left for life.
• You have problems obtaining loans in the private credit market, or are dependent on less expensive loan terms than you can otherwise obtain.
It is the overall situation of your household that will be crucial. The number of members in the household and high fixed expenses (for example student loans, grants, childcare) are important factors.
Here’s what you get a loan for:
• For top or full financing when buying a home.
• For the improvement of current housing.
• For refinancing so that the household can live in the current housing.
• As top financing for the construction of new housing.
You can get this in loans
It is up to the individual municipality to assess whether you will receive a loan and, if necessary, how big the loan will be. Municipalities may have different regulations for the scheme. Often, other banks and the municipality work together to put together a financing package. As a starting point, the private banks take the basic financing, and the municipality top funding as a start-up loan.