The countdown is underway for the issuance of the first subsidized mortgage loans to young people or young couples under 39 to purchase their first home under the My Home program.

At the same time, it is also planned to “launch” the Coverage program, within the framework of which the existing fund of apartments of the ESTIA program will be used to implement the social housing program. The goal is to allocate at least 1,000 apartments as social housing to young people aged 25-39 who receive a minimum guaranteed income and do not have a first home.

The processes are already underway: two Joint Ministerial Decisions (JMDs) are expected to be released during February, which will determine the details of the implementation of the programs.

According to the competent persons of APE-IGO, the whole process is proceeding at an intensive pace, so that in March the submission of applications from interested parties will begin, the first preferential mortgage loans will be issued (after the necessary approval from the bank) and the launch of the “Coverage” program.

The two initiatives are part of the government’s overall effort to significantly restart public housing policy, focusing on youth and vulnerable groups of citizens, with a total budget of 1.74 billion euros, from which more than 137,000 citizens will benefit.

Beneficiaries and amounts for concessional loans

In particular, with regard to the program of preferential mortgage lending, it is intended for young people and young couples aged 25-39 years (even if one of the two), who are either in a religious or civil marriage, or entered into cohabitation. contract, with an annual net income of 10,000 euros within the limits provided for the payment of the heating allowance, depending on marital status. In addition, they must not have another private home that covers their housing needs.

According to what was announced, the beneficiaries can purchase under the program the first housing worth up to 200,000 euros, up to 150 sq.m. and at least 15 years, while the loan can reach a maximum of 150,000 euros and its duration cannot exceed 30 years.

The purchase of the property cannot be made by a first or second degree relative of the buyer, and the property will be purchased in full ownership by the buyer or, in the case of spouses or civil partners, ownership of > 50% each.

At the same time, it is specified that a loan guarantor is not required and an eight-month period will be given from the moment of its preliminary approval until the signing of the loan agreement.

As already explained by the Ministry of Labor and Social Affairs, the benefit for those who join this program is that they will pay a mortgage installment that will be much lower than the rent corresponding to the house they have chosen, since the interest rate will be match up to one quarter of commercial rates.

Recall that the loan is 75% financed by the State Employment Service (DYPA), and no interest is accrued on the loan financed by DYPA, while the remaining 25% is provided by banks. This means that 3/4 of the loan is interest-free, resulting in the final interest rate that the borrower pays for the entire amount is a quarter of the cost of a conventional mortgage.

Particular attention is paid to those who have three or more children, as the loan will be interest-free for them, and for those who have three or more children when it is repaid, the loan will be converted into interest-free.

In addition, the loan will cover a higher percentage of the commercial value of the property (90%) compared to bank mortgages, which typically cover up to 80%. Consequently, the private contribution that young people have to pay is reduced to 10% of the value of the house instead of the 20% provided for in bank mortgage agreements.

The total budget of the program is 500 million euros, with the possibility of doubling if available resources are exhausted.

Regarding the Coverage program, it is also noted that the program, which has a budget of 21.5 million euros, will cover the cost of renting the residence for a period of three years and any renovation costs where necessary.

Finally, the government’s actions in relation to housing include, among others, the social compensation program, as well as the “Repair-Rent” campaign.