Poland’s Family Mortgage Program offers debt reduction of up to zł80,000 for families with children, a benefit often unknown to borrowers.
Family Repayment: A Chance to Reduce Debt
The family repayment option offers a chance to irrevocably reduce debt by zł20,000 or even zł60,000. Understand how the mechanism works in 2026, where the state repays capital on a family housing loan after the birth of a child.
This article explains current square footage limits, conditions for obtaining a subsidy from BGK, and situations where the bank may request a refund of funds.
Unawareness of Family Benefits
Despite the Family Housing Loan program operating for several years, many borrowers are unaware that expanding their family can realistically reduce their debt to the bank. In practice, the state can repay a portion of the mortgage, up to zł80,000, if two children join the family during the repayment period.
Direct Capital Reduction
These funds are not paid “into hand.” They go directly into the loan account and automatically reduce its capital. As a result, interest rates also fall, and installments become lower or the repayment period is shortened. This is the so-called family repayment, an element of the Family Housing Loan program.
Family Repayment Amounts in 2026
zł20,000 or even zł60,000. This is the amount of family repayment in 2026.
How Family Repayment Works
Within the program, a portion of the loan capital is repaid in the following amounts:
Therefore, if two children (second and third) join the family during the loan repayment period, the total assistance can amount to as much as zł80,000.
Funds Transfer and Interest Reduction
Funds are transferred by Bank Gospodarstwa Krajowego directly to the bank that granted the loan. Debt is automatically reduced, and with it, the interest charged on the remaining loan amount also falls.
Practical Example: Family Growth, Debt Shrinkage
Imagine a family that took out a mortgage to build a house. In the fifth year of repayment, a second child is born. BGK then repays zł20,000 of the loan capital. A few years later, a third child is born. Another zł60,000 is transferred to the loan account. As a result, the debt is reduced by as much as zł80,000. This often means lower installments or a shorter loan term.
Eligibility for Family Repayment in 2026
Family repayment is part of the Family Housing Loan program. The procedure for obtaining such a loan is very similar to a standard mortgage loan. The bank checks creditworthiness and collateral, and the borrower must also submit declarations confirming that they meet the program requirements.
To benefit from family repayment, several basic conditions must be met.
Program Limitations
The program does not cover situations where the apartment is intended, for example, for rent or business activity.
Eligible Uses for the Family Housing Loan
The loan covered by the program can be used for various purposes related to meeting housing needs. Funds may be allocated to, among others:
Post-Subsidy Requirements
An important condition applies after receiving the subsidy. For 5 years after receiving the subsidy, the property must be used exclusively for one’s own housing purposes. If any of the following conditions are violated, a portion of the received support will have to be returned. During this time, you cannot:
Repaying a Portion of the Subsidy
Repayment does not always mean returning the entire amount. In most cases, the principle of proportionality applies. If a violation of the conditions occurs before the end of the 5-year period, the repayment applies to a portion of the support – proportional to the number of months remaining until the end of that period. For example, if 30 months remain until the end of the five-year period, the borrower must return half of the received family repayment.
What is the Family Housing Loan?
The Family Housing Loan is a government program designed to make it easier to purchase a first apartment or build a house for people who have creditworthiness but do not have money for a down payment. Within its framework, it is possible to obtain financing of up to 100% of the property value, as the missing down payment can be replaced by a guarantee from the state provided by Bank Gospodarstwa Krajowego. The program operates under the Act of October 1, 2021, on the Family Housing Loan.
Households that do not own another apartment or house can benefit from the program. However, an exception is provided for families raising at least two children – in their case, it is permissible to own a small property, provided it meets certain area limits.
The loan can be used to purchase an apartment or single-family house both on the primary and secondary market, as well as to build your own house. This program aims to increase the availability of housing for people who would not be able to accumulate the funds needed for a down payment without additional support.
Frequently Asked Questions (FAQ)
Can you own an apartment and use the Family Housing Loan? As a rule, the program is intended for people who do not own an apartment or house. However, the legislator has provided an exception for families raising children. If there are at least two children in the household, you can already have one property, provided its area does not exceed the specified limits.
What is the permissible area of the apartment with children? The area limits depend on the number of children in the family:
This means that a family living in a small premises can use the program to buy a larger apartment or build a house.
Do you need a down payment? Not always. Within the program, the missing down payment can be replaced by a guarantee provided by Bank Gospodarstwa Krajowego. This makes it possible to obtain a loan of up to 100% of the property value.
What can the Family Housing Loan be used for? Funds from the loan can be used for various housing purposes, including: purchasing an apartment or house, building a single-family house, purchasing a building plot with the construction of a house. The loan can cover both properties from the primary and secondary market.
Does the program cover singles? Yes. Singles, married couples, and couples raising a common child can benefit from the Family Housing Loan. However, in the case of informal couples, the condition is having a child.
Does the bank check creditworthiness? Yes. Although the program helps replace the down payment, the bank still assesses the applicant’s creditworthiness. Income, employment status, credit history, and existing liabilities are checked.
Can an apartment purchased under the program be rented out? No. The property financed with the Family Housing Loan should serve to satisfy the borrower’s own housing needs. Renting out the premises or selling it shortly after purchase may have consequences, especially if the borrower benefited from family repayment.