What does the ceiling mean to banks put in by TTE for housing loans?

The Bank of Greece will be institutionalized at the level of loans from the banks ( ) next month. By yesterday (21.03.24) Act of the TTE Commander the funding limit for buying property will be set up to 80% or 90% of the value of the property if it is a new buyer. At the same time, TTE will also make a margin of 40% and 50% of its monthly disposable income for existing and new borrowers. Currently, housing loans granted by banks are at a lower rate of lending – own funds than the 80% threshold set by TTE (or 90% for a new buyer, i.e. for someone who first takes a housing loan), as it is common for the borrower to pay for the purchase of the property an amount of 30% – 35% of its value and the remaining 65% – 70% is covered by a loan. By explicitly setting the lending limits for a housing purchase, TTE seeks, on the one hand, to give ‘air’ to banks to finance at higher rates borrowers deemed to be able to meet the repayment of a higher loan. On the other hand, the TIF also raises a fence for higher loans in order to prevent future over-charges. This would not be unlikely, since interest rates will begin to deescalate by strengthening the possibilities and appetite for borrowing, and furthermore, the housing lending pie will open with the advent of credit companies, which can now provide housing loans. The Governor’s Act will exclude from the above limits loans that are not served 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.