It specializes in issuing low-interest loans to young people. Joint ministerial decisionthrough which the conditions of the program are specified “My house”.

The main points of the CP are as follows:

• Citizens who meet the conditions for participation in the program, i.e. aged 25-39 years on the date of application for a loan, from annual income of 10,000 euros up to the limit provided for the provision of heating allowance And they have no real estate suitable for habitationapply to undergo a principled eligibility assessment at one of the banks that will participate in the program.

Process

• The application must be accompanied by a series of supporting documents for each of the eligibility criteria. Banks check the fulfillment of the requirements (age limit, income, lack of habitable property) for each applicant. If they are met, they evaluate the creditworthiness of the interested party based on their internal rules and make a decision on pre-approving or refusing credit and credit criteria within 60 days from the date of application. Pre-approval is valid for 60 days from the date of its notification to the applicant.
• The bank informs the applicant of the pre-approval and he must notify the bank within 60 days of the requested loan amount, which cannot exceed EUR 150,000, the property he intends to buy and its price, which cannot exceed EUR 200,000 in accordance with purchase and sale agreement and provide the documents necessary for the bank to carry out the necessary verification. If the deadline is missed, the financial pre-approval is no longer valid. If all required supporting documents are submitted on time, then, after the bank has contacted ETA, ETA will freeze the amount of the requested loan until the final approval or partial approval or rejection of the loan by the bank is completed and includes a specific application to the program.
• The bank then conducts a legal and technical audit of the property and notifies EATA of the results. If the verification shows that the conditions for obtaining a loan are met in relation to the property, he submits the corresponding loan agreement to ETA. EBA verifies the submitted data and approves the contract, unless
  a) the potential borrower has applied for a loan or entered into an agreement with another bank under the program, or
  b) the amount specified in the contract exceeds the amount of the obligation or 90% of the amount of the contract of sale, or
  c) the registered data is incorrect.
• The signing of the contract with the final recipient, the registration of a mortgage or pre-mortgage on the property that will become loan security, and the payment of the total amount of the contract takes place within six months from the date of approval by the EBA. The specified period is extended by two months if the application for registration of a mortgage or bill of exchange is submitted during the semester. If these deadlines are not met due to the fault of the applicant, the application is rejected.

Supporting documents

With regard to the required supporting documents, it is provided that:

1. OUR applicant’s age confirmed by a birth certificate or a copy of the national identity card.
2. OUR Family status (in the case of, for example, a family with one parent or a large family) is confirmed by a certificate of marital status issued no earlier than one month before applying for a loan. In particular, regarding confirmation of the status of a single mother, the applicant must provide additional supporting documents in each specific case (widowhood, divorce, termination of the cohabitation agreement, inability of the other parent to exercise parental care, adoption by a single parent, etc.).
3. For determination of income Applicants use the personal income tax return data for the last tax year. When spouses or cohabitants, their family income is taken into accountwhether they submit separate reports or whether one of them is applying for a loan. As supporting documents for this element, either the personal income tax return (E1) for the last tax year, or the settlement sheet / act on the administrative calculation of personal tax for the last tax year can be submitted. Accordingly, in the case of spouses or cohabitants, the above documents are submitted by both, regardless of whether they submit separate applications or one of the two applies for a loan.
4. For establishing the presence or absence of property suitable for their residence, applicants submit a declaration of property details (E9) for the last year and a certificate of payment of a single property tax (ENFIA.) for the last year. In the case of spouses or cohabitants, the relevant documents of the spouses or cohabitants are also submitted, regardless of whether the loan application is submitted jointly or by one of the two.

According to the Ministry of Labor, in the event that the above documents confirm the existence of property, in order to determine whether it is suitable to meet the housing needs of the applicantsthe following criteria are taken into account, which must be met cumulatively:

• The property must have an area equal to or greater than 50 sq.m., which is increased by 10 sq.m. for each family member cohabiting with the applicant.
• The applicant has full ownership or the right to use more than 50% of the property.
• The property is located in the same regional unit as the place of work or profession of the applicant.
• The premises are used as living quarters.

Submission of supporting documents is accompanied by a responsible statement by which the applicant certifies that the information provided is true and complete, the supporting documents are genuine and that he has been informed of the conditions of the program, which he fully accepts. Banks have the right to request additional supporting documents or conduct additional credit checks on the applicant.

After the approval of the loan and before disbursement, the bank is obliged to inform ETA and DYPA of the control it has carried out in relation to the right of the beneficiary and the property to be acquired.

How to give young people 10,000 loans at low interest – the whole process
Joint Ministerial Decision on My Home program published – applications to banks begin at the end of March

Learn more ⬇️https://t.co/9FinB9Gapk

— Ministry of Labor and Social Affairs (@labourgovgr) March 2, 2023