“Spiti mou” co-financed mortgage loan

Between 25 to 39 years old

The “Spiti mou” co-financed mortgage loan is addressed to individuals who are 25-39 years old on the date when they file the application, and are single, married, parties to a civil partnership or single parents. In the case of a couple, it is enough for 1 of the 2 partners to be 25-39 years old.

With an annual income starting from €10,000

To apply, your combined annual income, according to the most recent tax return statement, must start from €10,000 and go up to:

• €16,000 for singles.
• €24,000 + €3,000 per child for couples who are married or civil partners.
• €27,000 + €3,000 per child, beyond the first one, for single-parent families.

The total combined annual income is determined according to the limits specified for the payment of the heating allowance, by delegated decision issued in accordance with Article 79(1) of Law 4756/2020 (Government Gazette 235/A/26.11.2020).

For a 1st home

The property must be used as your 1st home. This means that you don’t already own another property that may be used as a residence in the same Regional Unit as your place of work or professional activity. That is, a property from 50 sq.m. and over (+10 sq.m. per family member), over which you have full ownership or enjoyment at a percentage over 50%.

Size, commercial value and age

The property you will buy must:

• Be up to 150 sq.m.
• Have a commercial value up to €200,000, as stated in the purchase agreement.
• Be at least 15 years old, as arising from the building permit.

Other restrictions

Moreover, you must ensure that the property is:

• Located within a residential area.
• In the same Regional Unit as your place or work or professional activity.
• Free of unauthorised interventions.
• Accompanied by the necessary permits.
• Not marked for demolition.
• Not owned a 1st or 2nd degree relative.

Up to €150,000

You can get a mortgage loan up to €150,000 as long as you meet the scheme’s credit rating and eligibility criteria:

• 75% of the amount is financed by the State, up to €112,500.
• 25% of the amount is financed by the us, up to €37,500.

Up to 90% of the commercial value

The percentage of the financing you receive may cover as much as 90% of the property’s commercial value, as stated in the purchase agreement.

The remaining amount, at least 10% of the total, is covered by your own funds.

From 3 to 30 years with early repayment

The term of the loan can be from 3 to 30 years.

You have the option of repaying your mortgage loan earlier, in full or in part, at no extra charge.

With mortgage lien

The loan collateral can be a mortgage lien on the purchased property, for up to 120% of the loan amount.

Without guarantor

You don’t need a guarantor for your loan, according to the terms of the scheme.

0% interest rate on 75% of the loan

The interest rate is 0% on 75% of the loan, i.e. it is an interest-free loan.

Low interest rate on 25% of the loan

The interest rate on 25% of the loan is:

• Floating, linked to the 3-month Euribor + a 2.20% spread
• 0% if you have 3 or more children during the loan term.

Final interest rate on 100% of the loan

The final interest rate for the entire mortgage loan is:

• (3-month Euribor + 2.20%) / 4.
  
  Example: Let’s say the 3-month Euribor is 2,80% with a 2.20% spread. Your final interest rate will be a 1/4 of that:
  (2.80% + 2.20%) / 4 = 5.00% / 4 = 1.25%
• 0% if you have 3 or more children.

Free from the Law 128/1975 levy

The loans of the scheme are exempt from paying the Law 128/1974 levy along with the monthly instalment, which today stands at 0.12%.

Loan and mortgage lien fees

The fees for the “Spiti mou” co-financed mortgage loan are:

• €420 for the engineering inspection and due diligence.
• 0.775% or 0.875% of the mortgage lien amount, to register at the Land Registry or the National Cadastre, respectively.
• The lawyer’s fee for representing you at the District Court for the mortgage lien.

The goals of the “Spiti mou” co-financed government scheme are:

• Assisting young individuals and young couples to become homeowners. The amount they pay towards rent, which is a significant portion of their available income, will be reduced. This will free up financial resources they can make the most of, benefiting themselves and the economy.
• Reducing the existing inventory of older properties, by simultaneously using and upgrading them.
• Addressing the demographic issue of Greece, by fully subsidising the interest rate for large families.