From 1.1.2025 a maximum allowable limit is set for the debt service index to , when approved and the index to be valued when approved for new loans and other credits, in accordance with the Act of the Executive Board of the Bank of Greece. In particular, the cost of servicing the loan will not exceed 50% of the borrower’s income and the amount of the loan may not exceed 90% of the value of the property. More detailed: maximum allowable limit for debt-to-income at origination – DSTI-O) 50% for buyers for the first time and 40% for other borrowers, and maximum allowable limit for the loan indicator towards the value of the underlying property at the time of approval (loan-to-value at origination – LTV-O) 90% for buyers for the first time and 80% for other borrowers. These macro-precautionary measures do not apply to non-performing loans and loans under regulation (within the meaning of Articles 47a and 47b respectively of Regulation (EU) No 575/2013 of the European Parliament and of the Council), to loans and other credits linked to national housing policy or green transition programmes, governed by more specific terms and conditions (such as the ‘House of My’ programme), as well as to transferred portfolios from debt management companies from loans and credits under Law 5072/2023. Loans and other appropriations may also be disbursed in excess of the maximum allowed DSTI-O and LTV-O limits. Overshooting per indicator may be up to 10% of the total number of loans and other appropriations approved and even partly disbursed within each calendar quarter. SOURCE: RES-BE
The Bank of Greece’s housing loans are also worth a fortune.
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