“My House”: the secrets of cheap mortgages for young people

With the participation of all systemically important banks in Greece, a state program was launched in the country “My house”which will allow you to get 5000 credits for young people and young couples aged 25 to 39 with an interest rate limited to 1/4 of the normal market rate, while for large families the rate is zero.

The My Home program has a total budget of 500 million euros (enlargeable) and aims to help 5000 couples.

The monthly installment on the loan will be significantly lower than the corresponding mortgage loans in the market, as 75% fundsprovided DYPAare interest-freeand for those with three children and large (and acquiring this status upon redemption) the loan is provided in full interest-free.

Thus, borrowers will have a significantly lower down payment compared to home loans provided by banks and, accordingly, a much lower burden than any increases in bank interest rates that have been or may be made in connection with the international crisis.

The following banks participate in the program: Ethniki, Piraeus, Alpha, Eurobank, Attica Bank, Pankritia, as well as the Cooperative Banks of Epirus, Thessaly, Karditsa and Chania.

The beneficiaries are persons aged (at the date of application for a loan) from 25 to 39 years old, or married couples (one of them must meet the age criterion), provided that:

1. They have annual income at least 10,000 euros and up to 16,000 euros per person, 24,000 euros for a couple plus 3,000 euros for each child, 27,000 euros for a family with one parent plus 3,000 euros for each child after the first.

2. They don’t own real estateto suit their housing needs.

Eligible properties are residential buildings of commercial value (i.e. the value that will be specified in the contract of sale) up to 200,000 euros, area up to 150 sq.m. And at least 15 years oldin a residential area.

Amount of credit cannot exceed 150,000 euros And term 30 yearswhile it can cover up to 90% of the value of the property. The loan is exempt from tax under the number 128/1975, the amount of payments for which is currently 0.12% of the value of the acquired property. The program covers the cost of the package for each potential borrower.

It is not allowed to request a guarantee from a third party to provide a loan. Signing of the loan agreement and payment of the amount must take place within six months from the date of approval of the Hellenic Development Bank application.

The repayment of subsidized interest will be made by DYPA, after payment of each installment by the borrower, to an account which will be kept at a banking institution, with the borrower only obligated to pay the debt. In the event that the borrower delays the installment payment for 3 consecutive months, the interest subsidy will be terminated and its payment will now be made by the borrower. The interest subsidy termination date is defined as the end of 90 days past due.

The renewal of the interest rate subsidy will be possible only in cases when the borrower repays all of his overdue debts or joins the loan agreement, after the borrower has submitted a relevant application to the cooperative bank, documenting the reasons for the impossibility of servicing the loan and its approval.

The borrower will be able to partially or fully repay the loan ahead of schedule, without any fines or other fees.

For this program, you can also read in our publications:

• “My House”: loans up to 150,000 euros with an interest rate of 1%. What is included in the new housing program
• “My Home”: 19 answers about “cheap housing” for young and vulnerable segments of the population
  
• “My House”: all about the new housing program in 11 questions and answers
• Criteria, documents and procedure for issuing preferential loans under the My Home program
  
• Repair-Rent program: who can receive a subsidy of up to 10,000 euros
  

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