TE is on the lookout for housing credit – What is the funding ceiling for

On the lookout for the progress of the loan that is being made in real estate, is the , as the introduction of ceilings in relation to the value of the property, and also the available income of the borrower proves. According to the TTE Decision, from 1/1/2025 banks will be loaned for housing loans or loans (consumption, professional, small business) with a discount/subsidiary on residential property, with a maximum allowed limit for the debt-to-income at origination (DSTI-O) of 50% for buyers for the first time and 40% for other borrowers, and a maximum allowable limit for the n loan indicator towards the value of the mortgage at origination – LTV-O) 90% for buyers for the first time and 80% for other borrowers. Behind the TTE’s decision to establish a loan framework, which has reportedly been adopted earlier by the other eurozone countries in the context of preventing over-indebtedness and risk of loss of residence, lies its agony for the swamped housing faith. New housing loans in Greece remain at low levels (only 1.2 – 1.3 billion euros annually), with the rise of interest rates having a negative impact on demand and, in large part, housing markets are made with a greater cash contribution and less borrowing. In this context, the funding limits set by TTE are set at higher levels than banks apply to borrowers, namely, the loan ratio – equity ratio moves to 35% – 65% or 30% – 70%. At the same time, however, the TTE’s limits also function as a “fragment” that cannot be overcome when, for example, in future interest rates will be lower and demand for borrowing will be strengthened, tempting banks to “share” loans. Without also considering that the ‘terren’ of housing loans can now be operated by credit providers, which in future can stimulate competition for the customer. It is noted that the limits set by the TIF will exclude loans that are not serviced or regulated, as well as loans that fall under government housing policy programmes (e.g. my Home Programme). In addition, from the limits of a loan granted or a monthly instalment in relation to income, 10% of the number of housing loans granted by banks per quarter can be excluded.