- Purpose of Loans: Purchase of a first home
Beneficiaries
Persons aged 25-39 (on the date of submission of the loan application), or spouses or persons linked by a cohabitation agreement, if one (1) of the two ( 2) are 25-39 years old (on the date of submitting the loan application), provided they do not own another property suitable for their residence and meet the income criteria.
Beneficiary Income Criteria. (The maximum income limits are identical to the limits established for the payment of the heating allowance according to the Joint Ministerial Decision in force. Especially, for 2023, these are defined as :
|
Beneficiary type |
Lowest annual income |
Maximum Annual Income (2023) |
|
Young, single |
€10,000 |
€16,000 |
|
Couples |
€24,000 |
|
|
Single-parent families |
€27,000 |
- When does the property owned by a potential beneficiary cover his housing needs?
For the applicant for a housing loan to be considered a beneficiary of the program, while he already owns a property, the property he owns must not cover his housing needs.
The criteria according to which an existing property is suitable for the applicant’s housing needs are:
a) In the case of an unmarried and childless beneficiary, the existing property must be up to 50 sq.m., while for the rest the size increases by 10 sq.m. per family member (including pregnant children at the time of submitting the application).
b) In addition, the applicant has either full ownership or usufruct at a higher co-ownership rate from 50% on his property.
c) The property he already owns must be located in the same Regional Unit as his place of work or profession. In the event that the applicant’s place of work or profession is located within the Attica Region, the property is considered suitable if it is located within the Attica Region. If the property is located on an island, other than Crete, then it is considered suitable if it also agrees with the place of work on the same island. The property must have residential use.
The above criteria must apply cumulatively.
If these criteria are not met, then the applicant is considered not to have a property suitable for his housing needs and therefore may be a beneficiary of the program.
Property Eligibility Criteria for Purchase
The Program supports lending only for properties that:
- They will be used as a residence
- They have a value of up to €200,000, as reflected in the purchase contract
- They have a size of up to 150 sq.m.
- li>They are at least fifteen (15) years old at the time of purchase, as shown by the construction permit
- They are located within a residential area, as specifically provided for in article 4 of Law 5006/2022 (A’ 239 )
Property Seller Criteria
The seller of the property is prohibited from being a relative (of the buyer or the other member of the couple) , by blood or by blood, A’ or B grade, or a person connected by a cohabitation contract with the buyer, indicatively:
- grandparents in relation to grandchildren
- siblings in relation to each other
- parents in relation to children
The certification of the degree of kinship is carried out with a certificate of marital status and a certificate of guarantor relatives (or with a relevant cohabitation agreement)
Eligible Loans
Loans that must cumulatively meet the following conditions:
- Loans with a duration of up to thirty (30) years
- Loans on the basis of which the property is acquired in full ownership by the buyer or buyers, if they are spouses or parties to a cohabitation agreement, with a distribution of the percentage of ownership between them in proportion to the financial contribution of each to the granted loan.
- The loan covers up to 90% of the commercial value of the property as reflected in the purchase contract.
- The property meets the eligibility criteria.
- During the loan period it is also prohibited any contract in rem whose object is the transfer or encumbrance of the acquired property is automatically void, except for the one required to provide collateral for the loan, unless the D.YPA.A. and the credit institution that grants the loan.
- Loan contracts drawn up under the “My Home” program are not subject to the levy of Law 128/1975.
Interest Subsidy
The Loan Interest will be subsidized by 100% for the entire duration of the loan in cases:
- Young couples who have three or more children at the date of submitting a financing application,
- Young or young couples who, during the repayment of the loan (up to 30 years ), become triplets or multiples. The interest rate subsidy will begin after the submission to the Bank of the required supporting documents regarding the fulfillment of the conditions for inclusion in the category of families with three or many children and will concern the remaining repayment period of the loan.
The conditions for the interest subsidy are checked based on the number of dependent children, as reflected in the accompanying supporting documents. by the borrower, in an account that he will keep in the banking institution while the borrower is obliged to pay only the arrears. their payment will now be made by the borrower. The interest subsidy termination date is defined as the completion of ninety (90) days of overdue installments. The resumption of the interest rate subsidy will only be possible in cases where the borrower repays all of his overdue debts or joins a loan arrangement, following a relevant request from the borrower to the cooperation bank with documentation of the reasons for the inability to service the debt and its approval.Maximum Loan Amount
- The maximum loan amount will amount to 90% of the purchase contract amount, and in any case, it does not exceed the €150,000
Loan guarantor
No personal guarantee from a third party is allowed.
Where to submit the application
D.YPA.A. publicizes the Credit Institutions that participate in the Program and the terms of their participation (interest rate offered, legal and technical audit costs). The citizen chooses the Credit Institution he wishes and submits his application to it.
Critical Deadlines for Granting Loans
Within sixty (60) days of the borrower’s application, the credit institution checks the fulfillment of the required criteria and grants him the financial pre-approval.
In exceptional cases of delay process of transferring the property and provided that the relevant application for registration of a mortgage or pre-notification has been submitted within the period of six (6) months, the completion of the loan agreement and the disbursement may be extended for an additional two (2) months.
Pre-approved loans of beneficiaries, for which it was not possible to realize their purpose within this period of time (ie 6+2 months from the date of pre-approval of the application in the Program), will be canceled and their budget will be released. The above regulation does not apply if the deadlines have not been met through no fault of the applicant. The beneficiary will have the right to re-submit a funding request, as long as there are resources available in the Program budget.
Early repayment
The Borrower may partially or fully repay the loan before the due date WITHOUT any penalty or other charge.
Loan Cancellation
The Credit institution terminates the loan after completing ninety (90) days of delay.
For these loans, the internal procedures and the current institutional framework of the Credit Institutions will be applied.
Loan Arrangements
For these loans, the internal procedures and the current institutional framework of the Credit Institutions will be applied, with the limitation that the arrangement , should not reduce the amount of the loan agreement in such a way that the capital ultimately returned will be less than the total amount that has been disbursed, nor increase the interest rate which will remain the same or reduced to service the regulated debt, nor increase the repayment period beyond the maximum period of thirty (30) years, nor to capitalize interest or default interest.
- Expenses for the purchase of the property
The amount of management costs that includes all fixed and one-off costs of the banks’ loan portfolio for management and eligibility check of the beneficiaries, is paid by the Program at the time of disbursement of the loan. The Borrower is not charged extra for the file costs.
The other costs for the purchase of the property (e.g. legal audit, technical assessment of the property, etc.), are made public for each Credit Institution that participates in the Program on the website of DYPA and the Hellenic Development Bank and are borne by the Borrower. - Other costs related to the registration of the encumbrance on the property such as:
- expense for the issuance of the court decision to register a pre-mortgage note on a property,
- fee for the registration of the pre-mortgage note,
- li>expenses for the submission of an application for the issuance of certificates,
- summary of the court decision and the issuance of the certificates,
- expenses for the declaration of pre-notification rights, if a Land Office operates,
- expenses of removing pre-notification, will be paid by the borrower.
>
- The following participate in the program Banks with the following conditions:
INTEREST RATES OFFERED
|
a/a |
Credit Institution |
Fixed Rate |
Floating Rate – Base Rate |
Floating Rate – Range (%) |
|
|
1 |
Alpha Bank |
|
3-month Euribor |
2.20% |
|
|
2 |
Attica Bank |
3-month Euribor |
2 .9%-4% |
||
|
3 |
Eurobank |
3-month Euribor |
1%-4% |
||
|
4 |
Nationality |
3-month Euribor |
2%-2.5% |
||
|
5 |
Piraeus Bank |
Euribor month |
p> |
2.50% |
|
|
6 |
Pancreatia |
3-month Euribor |
1.5 %-2% |
||
|
7 |
Cooperative Bank of Epirus |
3-month Euribor |
2%-3.5% | ||
|
8 |
Cooperative Bank of Thessaly |
Euribor month |
2%-4% |
||
|
9 |
Cooperative Bank of Karditsa |
5.00% |
– |
– |
|
|
10 |
Cooperative Bank of Chania |
3-month Euribor |
1.5%-4.9% |
LEGAL AND TECHNICAL AUDIT COSTS
|
CREDIT INSTITUTION |
Cost of Legal and Technical Audit (Euro) |
|
ALPHA BANK |
€420.00 |
|
EUROBANK |
• From €500 Technician Cost & Legal Audit, which varies subject to conditions (e.g. surcharges for areas outside the engineer’s headquarters, islands, etc.). |
|
NATIONAL |
Cost of Legal and Technical Audit Minimum €246. In special cases where a change of property takes place and new property inspections need to be carried out, there will be an additional charge for the completion of the Legal and Technical Inspection. |
|
PANKRETIA |
Cost of Legal and Technical Audit (euro ) |
|
EPIRO COOPERATIVE BANK |
€400.00 |
|
COOPERATIVE BANK OF THESSALIA |
€350.00 |
|
COOPERATIVE BANK OF KARDITSAS |
€300.00 |
|
COOPERATIVE BANK OF CHANIA |
€350+ VAT |
|
ATTICA BANK |
Cost of Legal and Technical Audit (euro) |
|
BANK OF PIRAEUS |
€500, including VAT. The fee refers to a maximum amount for a property and does not include any travel expenses that may be incurred due to a property in remote areas where there is no branch of the bank |
The “Spiti mo” loan program is implemented with resources financed entirely by the Public Employment Service and managed by the Hellenic Development Bank S.A.
- More on the website of DYPA.
