The participation of young people under the age of 39 to receive low-interest or even interest-free, in the case of many children, mortgage loans for the purchase of a first home under the program is high. “My house” her State Employment Service. 75% of the loan provided by DYPA is interest-free, and only 25% will be provided on terms and conditions set by the banks participating in the program. They have the right to apply young people aged 25-39 and couples – if one of the members meets the age criterion – with an income between 10,000 and 16,000 euros and do not own their own home. The maximum loan amount cannot exceed 150,000 euros, and the cost of housing – on the basis of agreements – 200,000 euros.

14,000 applications from young people under 39 for cheap housing

Rula Salurou

More than 14,000 applications from young people and young couples for participation in the My Home program and the issuance of interest-free or soft loans, with interest rate which corresponds to a quarter of the normal market rate for the acquisition first residence. The interest is very high, which raises the possibility of doubling the initial amount provided by the Public Employment Service (DYPA) to 1 billion euros.

Already according to the latest DYPA data, which “K” represents today, at least 600 applications have been pre-approved by banks, and 50 cases have already moved into the accession stage, as interested parties have also submitted the necessary documents for a specific property to the bank. After all, it is precisely this, i.e. Finding the right property is the most important step for approval, provided that applicants borrowers they meet the basic conditions for participation in the program, i.e. they are young, up to 39 years old, have an income of 10,000 to 16,000 euros and do not own their own home. Of course, what makes the program extremely attractive is the particularly low interest rate as it is 1/4 of the market and 0% for three or more children. In addition, 75% of the loan provided by DYPA is interest-free, and only 25% will be provided on terms and conditions set by participating banks.

A) The interested person selects the desired bank and submits an application. All systemic banks, Alfa Bank, Eurobank, National Bank and Piraeus Bank participate in the program. Also participating are Pankritia, the cooperative banks of Epirus, Thessaly, Karditsa, Chania and the Bank of Attica. By Maundy Thursday, 14,000 applications had been submitted. Required supporting documents to be submitted:

1. Birth certificate or copy of ID.

2. A certificate of marital status is issued no earlier than one month before applying for a loan.

At least 600 applications have been pre-approved by banks, and another 50 are in the process of being submitted.

3. Personal income tax return (E1) or account statement for the last tax year.

4. E9 statement and certificate LIGHT last year.

The 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 taken note of the conditions of the program, which he fully accepts. In the case of couples, documents are submitted by both.

B) The Bank verifies that the required criteria are met and issues a financial pre-approval valid for 60 days from the date of notification. Participating banks have pre-approved at least 600 applications, according to DYPA. In fact, it is expected that from next week there will be faster procedures and pre-approval of more applications.

WITH) The applicant discloses the property and its price, as well as the necessary documents. This is considered the most difficult step, especially for those who have not yet found the right home. However, by law, the program applies to houses up to 150 square meters. m over 15 years old. By 2007, they must also obtain a building permit.

D) After the necessary checks, the application is included in the program and the legal and technical control of the acquired property begins (lasts up to 60 days).

E) The loan agreement is signed and the loan is issued within six months from the date of inclusion of the application in the program. The loan covers 90% of the commercial value of the property compared to a bank mortgage, which typically covers up to 80%. Consequently, the private contribution that young people have to make is reduced to 10% of the value of the house instead of the 20% provided for in bank mortgage agreements.

Banks expect new loans of 1.5 billion this year

Evgenias Tsortzis

New mortgages are estimated to reach €1.5bn in 2023, compared to the €1.2bn the market closed in 2022, projecting a double-digit growth rate for an otherwise wintered home loan market that is shrinking systematically last time. years. The post-sale mortgage balance of €21bn in hot mortgages has fallen to €29.4bn in recent years, and net funding flow – i.e. new loans after old mortgages are repaid – remains negative, leaving mortgage balances are frozen at the level of 2004, i.e. long before the start of the financial crisis. The repayment of old debts also led to a decrease in the average mortgage balance, which now ranges from 50,000 to 70,000 euros. The average loan for new grants is also low at €80,000, as the main condition is now 30% financing of the purchase with the stakeholder’s own capital.

The key constraint hindering a more dynamic market development is the high level of interest rates due to the new increase expected by the ECB in May, as well as the high level of property prices, preventing a more significant turn in the housing market to cover housing needs. The impetus is expected to come from the Spiti mou program, for which the application process has begun, as well as fixed interest rates that provide fixed installments and protection from interest rate hikes.

Fixed interest rates

An increase in interest rates by the ECB interrupted the upward trend registered in the mortgage market.

Fixed interest rates that apply today, although increased compared to last year, range from 3.50% for short-term 3-year loans to 4.90% for long-term 30-year loans. In particular, the fixed interest rate of the Eurobank for 3 years is set at 3.50%, for 5 years – at 3.60%, for 10 years – at 4.30% and for a fixed period of time from 15 to 30 years – at the level of 4.60%.

The fixed rate of the National Bank for 10 years ranges from 3.80% to 4.20%, the fixed rate for 15 years – from 4.05% to 4.45%, for 20 years – from 4.30% to 4.60%, for 25 years – from 4.45% to 4.75%. %, and a fixed rate for 30 years ranges from 4.60% to 4.90%.

Alpha Bank’s fixed rate for the first 5 years is 3.60%, for 10-year olds 4%, for 15-year olds 4.20% and for 20-year olds 4.60%. The bank’s interest rates increase by 0.30% in case of financing more than 60% of the assessed value of the property.

Piraeus Bank applies fixed interest rates from 3.55% to 4.80% for 3 to 30 years, while the bank’s floating interest rate is based on 1-month euribor plus a margin that starts at 1.90% and goes up to up to 2.85%. . It should be noted that for the remaining term of the loan after the fixed period, a floating interest rate is applied, which for other banks is based on a 3-month euribor increased by 3.3% or 3.75% for the National Bank. Bank, by 2% to 2.50% (depending on the loan amount) for Alfa Bank and up to 2.5% for Eurobank.