Young people are showing great interest in the “My Home” program, which provides preferential or interest-free housing loans to young people and young couples aged 25 to 39 to purchase their first home.

After all, this is evidenced by the number of applications, the filing of which began on Monday, April 3, 2023. According to information, in less than a month, and specifically until Thursday, April 20, 2023, applications reached 18,895. Of these, 996 were pre-approved by banks with an average loan amount of EUR 111,000.

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

The beneficiaries of the program are individuals aged 25 to 39 years old on the date of application for a loan, or spouses or persons bound by a cohabitation agreement, provided that the age of one of the two is from 25 to 39 years old on the date of application for a loan loan. the date of application for a loan, who do not have other habitable property and meet the established income criteria.

It is reminded that the annual income must be at least 10,000 euros, and the maximum is that which applies to the payment of the heating allowance (for 2023, the following applies: 16,000 euros per person, 24,000 euros for a couple plus 3,000 euros). euros for each child and 27,000 euros for single-parent families, plus 3,000 euros for each child after the first).

The main advantage for young people who join the My Home program is that they receive a lower loan repayment fee, as 75% of the amount is provided interest-free by the State Employment Service (DYPA) and the Bank’s interest rate is applied to the balance of 25% from the sum. It is noteworthy that for those who have three children, large families and for those who acquire this status upon repayment, loans are issued interest-free, with 100% subsidizing of the DYPA interest rate. Thus, the interest rate on a loan is set at a quarter of the corresponding interest rate, usually charged by banks, or equal to zero for children with three or more children.

The loan amount cannot exceed 150,000 euros and a period of 30 years, while it can cover up to 90% of the value of the property.

According to the Ministry of Labor and Social Affairs, the program supports lending to real estate that will be used as the main residence, have a commercial value of up to 200,000 euros, as reflected in the sales contract, have a size of up to 150 sq. m., whose age at the time of purchase is at least 15 years, which is confirmed by a building permit and is located within a residential area.

Additional benefits of loans that will be issued under the program are:

– The loan is exempt from the contribution of Law 128/1975.

– The program covers the cost of the package for each potential borrower.

– It is not allowed to request a third party guarantee for the provision of a loan.

Also launched the program “Covering”.

At the same time, the Ministry of Labor and Social Affairs announced that the first family to join the Ministry of Labor and Social Affairs’ Outreach Program for free placement of low-income youth in private homes moved into their homes. a new house, the rent for which is paid by the state.

The Reach program targets young people aged 25-39 who are on minimum income security and do not own their own home. The goal at this stage is to accommodate 3,000 beneficiaries using at least 1,000 houses.

According to the ministry, through the program, the state covers the costs of renting private houses for three years, allocated to accommodate asylum seekers under the ESTIA program, which ended in December. Program beneficiaries additionally receive expenses for household relocation and transportation of household goods, and owners, in addition to guaranteed rent, which cannot exceed the rent received by them through ESTIA, plus 2022 inflation, also covers any damage found in properties during rental time.

Source: RES-IPE