“My House 2”: loans and houses with an area of ​​100 sq.m. worth 200,000 euros

The new housing subsidy program “My Home” will come into force after the New Year, but for those who are ready to take the plunge, a real “safari of opportunities” has already begun.

The terms of the program are very attractive, and the number of potential beneficiaries seems limited – only 20,000 people, given the high demand for participation:

• 50% of the loan will be financed from the Recovery Fund and will be provided on an interest-free basis, while the rest will be available as a low-interest bank loan with a rate below 2%.

• The age limit for beneficiaries has been raised to 50 years, up from 39 years in the previous scheme.

• Income criteria have been expanded: up to 20,000 euros for singles, up to 28,000 euros for married couples and an additional 4,000 euros for each child.

• The program applies to properties worth up to 250,000 euros, up to 150 sq.m. and built before 2007.

• The loan amount can reach 190,000 euros, covering up to 90% of the contract amount.

• The loan term varies from 3 to 30 years.

Although the perimeter of the objects of the new My Home program has been expanded to 250,000 euros compared to 200,000 euros in the previous one, the main question remains: are such objects available and in which areas?

The fact is that over the past 18 months, which separates the programs “My Home 1” from “My Home 2”, real estate prices – both old and new – were constantly rising. In 2023 they grew by an average of 13.8%, and in the 9th month of 2024 by about 9%. Indomio data shows that in areas where the average asking prices for a 120 sqm apartment are within the program, the cost is around €2,000 per sqm.

THESSALONIKI

One more An important issue is the availability of mortgage loans. The latest data from the Bank of Greece does not inspire much optimism. Firstly, repayments on loans secured by residential real estate amounted to 593 million euros, an increase of 16.9% compared to the first half of 2023. However, they remain low both in absolute terms and compared to pre-global financial crisis levels.

10,257 new loan agreements were concluded and in the first half of 2024 the average loan repayment amount was only 57.9 thousand euros, which is less than in the first half of 2023 when it was 77.2 thousand euros.

Even these mortgage loans were not accompanied by a relaxation of lending criteria. It is significant that the majority of payments – 72.9% – fall into the “low risk” category, that is, for borrowers who meet more stringent requirements.

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