Savings account for first home purchasers (ASP account)
A savings account for first home purchasers, abbreviated as the ASP account, is intended for persons aged 18–30 who wish to save money to purchase their first home. The duration of the account is a minimum of two years. The deposit and the interest paid on it must together correspond to at least 10% of the price of the house to be purchased. In order to be granted an ASP loan, the customer also needs to provide the normal collateral accepted by the bank.
An ASP agreement may be changed during the lifetime of the account. The agreement may also be transferred to another bank, in addition to which the borrower may also take the loan from another bank than the bank at which the deposit was made.
Additional interest and interest subsidy incentives
The bank pays 1% interest on the ASP account during the lifetime of the account. Once the depositor has reached the savings target and bought the house, the bank will pay an additional interest rate of 2–4%. In addition, the state pays an interest subsidy on the loan, if the loan amount is below determined limits. For further information on the terms and conditions of ASP loans, please refer to banks and the Ministry of the Environment.
Deposits made in an ASP account are not subject to tax, nor are the interest and the additional interest paid by the bank regarded as taxable income. No tax at source is levied on the interest or the additional interest.
ASP agreement imposes restrictions
An ASP agreement is terminated if the depositor withdraws funds from the account or buys a house before having deposited at least half of the deposit payments as agreed in a valid ASP agreement. If the agreement is terminated, the depositor is not entitled to the agreed loan.
24 October 2011