Home 2: The program opens on January 15th, vibrant demand await banks

A new landscape in housing loans, raising their expectations of reversing the negative rate of expansion of housing credit since this year, creates the program that “falls” into the market over the next few days. Banks expect my new Home 2 programme to push the new mortgage disbursements to at least EUR 2 billion, in 2025, from EUR 1.8 billion expected figures for 2024, after years of freezing housing loans to levels of 1.3 billion maximum. CORVERSE Submitting applications for membership to my Home 2 program begins on January 15 and is addressed to 20,000 beneficiaries who will be able to obtain, with a low interest loan, their first residence. In the new “Home 2” the age and income criteria have been managed so that individuals between 25 and 50 years of age, with a minimum income limit of 10,000 euros and maximum according to their family situation: 20,000 euros for singles, 28,000 euros for married or living together, increased by 4,000 euros per child and 31,000 euros for single-parent families more than 5,000 euros per child beyond the first, to acquire their own housing. The economic advantage for the beneficiary of the programme will be strong, resulting in banks expecting an increase in demand for housing loans. It is noted that demand for housing loans is expected to be boosted this year due to the ECB’s interest rate reduction – as estimated by one percentage point by autumn. CORVERSE However, my Home 2 loans are already far more interesting, as for 50% of the loan (derived from resources of the Recovery and Durability Fund) a zero interest rate is applied and for the remaining 50% granted by the bank, the interest rate will be preferential and will be agreed with the institutions when submitting their proposals. Thus, the final loan cost for the beneficiary, making it more affordable and favourable compared to normal bank housing loans. In fact, receiving a mortgage under my House 2 will be more favorable than renting a residence. Another incentive is thus given to increase housing loans from the banking system. For example, on the basis of examples given by the Minister for Social Cohesion and Family, Sophia Zachraki, at the presentation of “House My 2”, for an apartment of 80 sq.m., in Nea Smyrna, 1985, sold 160,000 euros and one buys it with a loan of 110,000 euros for 25 years, the monthly installment without my House 2 would be 660 euros while with the project 440 euros. That is, a benefit for the borrower of EUR 220 per month and a total benefit in the 25 years of the loan over EUR 65,000. Or for an apartment of 100 sq.m., in Agia Paraskevi, 1987, sold today 220,000 euros and someone buys it on a 150,000 euro loan for 25 years. The installment without my House 2 is close to 900 euros, and with the program at 600 euros. Benefits for the beneficiary EUR 300 per month and a total benefit at 25 years of loan over EUR 85,000. It is noted that the maximum amount of loan granted with my House 2 is 190,000 euros and the loan will cover up to 90% of the value of the property as defined in the purchase contract. In practice, this means that if the property value is 200,000 euros, the maximum loan amount will be 180,000 euros (90% of the value) and the borrower will have to pay at least 20,000 euros from his own resources. The loan will last between 3 and 30 years. It is also important that the acquired property and not other collateral will be taken as collateral, while the guarantee rate will not exceed 120% of the amount of the loan. In practice, this means that if, for example, one receives a 100,000 euro loan, the maximum value of the asset (i.e. the value of the property for which a mortgage is to be registered) cannot exceed 120,000 euros. However, for banks and the success of the project, the beneficiaries will be entitled to find the houses included in the specifications of my Home 2. That is, a house that will be used as a main residence, will be located in a residential area, will be a single separate horizontal property or a single residence, with an area of no more than 150 sq.m. (e.g., not counting the annexes – monitors recorded on the purchase contract), with an old age up to 31/12/2007 and the value of the property as specified in the purchase contract, which should not exceed 250.000 euros. As regards old age, this begins to be calculated after two years from the date of issue of the building permit or its last revision, i.e. until 31.12.2005. (indicative if the building permit was issued on 30.9.2005, the aging begins to be calculated from 30.9.2007). Where there is no building permit, a certificate of completion is requested by an indication in the field of oldness ‘until 31.12.2007’.