The "My Home" program allows young people to grant mortgage loans with favorable terms or interest-free loans to 10,000 young people or young couples aged 25-39 for the acquisition of their first home.
Thousands of young people up to the age of 39 will be able to apply for cheap mortgages of up to 150,000 euros with an interest rate of 1.5% and a repayment period of up to 30 years. Priority will be given to those with many children and young couples with children, while couples without children and singles will follow. More than 137,000 citizens will benefit from the "My Home" program, with a total budget of 1.74 billion euros.
The low-interest loans with the co-financing of DYPA (formerly OAED) and the banks will cover up to 90% of the commercial value of the property with a maximum limit of 150,000 euros for the purchase of a first home up to 200,000 euros, area up to 150 sq.m. and at least 15 years old.
In practice, those who join this program will pay a mortgage installment that will be much lower than the rent corresponding to the house they have chosen, as the interest rate will correspond to a quarter of the commercial rates. And anyway, it will be zero for families with three and many children. Most importantly, by repaying the loan they will acquire the ownership of the house.
In addition, the loan will cover a higher percentage of the property's commercial value (90%) than bank mortgages that usually cover up to 80%. This means that the private contribution that young people have to contribute is reduced to 10% of the value of the house instead of 20% provided for in the bank mortgage contracts.
Also, with this program, households that under normal circumstances would hardly meet the bank's financing criteria gain access to bank loans.
Doses
The monthly installment is calculated at 275 euros for a house of 100,000 euros (with today's data), while for a loan of 150,000 the monthly installment reaches 434 euros for 30 years of repayment. In the first case the annual interest is 1,680 euros less and in the second 2,640 euros. Depending on the amount of the loan and the income criteria, the banks will define the amount of initial capital that will be required on a case-by-case basis.
The money that will be given through DYPA will be interest-free, while for the amount of the banks (1/4 of the loan) the government has already agreed to set a ceiling on the maximum interest rate that the banking institutions will be able to charge.
Interest rate
The amount of interest that the banks will charge for the 25% of the loan has been locked to be equal to Euribor of the last quarter of the year increased by 4%.
With the current data and the new interest rate hikes by the European Central Bank in the coming months the interest rate for the entire loan is estimated to be between 1.25%-1.5%. Also, in order to obtain a housing loan, the same participation of the borrower will be required by 10% on the value of the property.
Contact us to review the conditions for joining the Program 231 309 7575 or [email protected].
Source: https://www.in.gr/