Mortgage Loans in Greece: What’s Driving Demand and 2026 Outlook

Demand for mortgage loans in Greece is projected to remain strong in 2026, following a 46% surge in 2025. Key drivers include rising residential market mobility, eased lending terms, and declining interest rates from Greek banks. Total mortgage disbursements are expected to exceed €3 billion in 2026—up from €2.6 billion in 2025, when 45,000 households secured new home loans. This marks the start of a new credit expansion cycle after 15 years of contraction. The ‘My Home II’ government program—running through 2026—further supports demand; in 2025 alone, it facilitated 7,657 new mortgages totaling €831 million. Contributing factors also include the ECB’s monetary policy easing, improved bank funding costs following international credit rating upgrades, and digital transformation accelerating loan approvals. As of November 2025, the average variable-rate mortgage interest stood at 3.40%, and the overall average for new mortgages at 3.49%—a sustained decline despite stable Euribor. Financial incentives for first-time buyers and streamlined digital processes continue to bolster steady demand, likely persisting through at least the first half of 2026—though global liquidity developments could influence future trends.