The motivation for this graduation thesis comes from the record number of approved applications for housing loan subsidies in the spring od 2022., governed by the Croatia Real Estate Agency. This paper points out that since the beginning of the subsidy program in 2017., real estate prices have been increasing, while on the other hand, lending conditions are improving. Through the theoretical settings of the loan amortization model with nominally equal annuites and nominally equal principal payments, the debtor`s position is calculated in the form of an effective interest rate. A year-by-year review of the subsidy program reveals that higher subsidies for less developed areas do not compensate for the problem of less development and that the areas with the biggest number of approved requests are precisely the most developed areas. An overview of the real estate market shows that Croats traditionally prefer to live in their own real estate, and that the supply of real estate does not follow the demand, which also affects the rise in prices. Using the real estate price index created by Central Bureau of Statistics and Croatian national bank and using the original offers of Erste bank, it is found that the effect of the increasing real estate prices is stronger than the effect of decreasing interest rates, which worsens the debtor`s position in solving their own housing issue.