Applications open for low-interest mortgages for under 39s: How to apply

For example:

- for a loan of 100,000 euros with a repayment period of 30 years and an interest rate of 5.8%, the monthly installment is normally 587.52 euros, while with the subsidy it is reduced to 342.87 euros (benefit is 244.65 euros per month or 2,935 euros per year year) and for three children - many children) the installment is limited to 277.78 euros, (a benefit of 309.74 euros per month or 3,716.88 euros per year).


- for the same loan with a shorter repayment period (20 years) the monthly installment from 705.63 euros is limited to 480.39 euros (a benefit of 225.24 euros or 2,702 euros per year and for three children - many children the installment is reduced to 416.67 euros (profit 288.96 euros or 3,467.52 euros per year).

For the first time, young people and couples with low incomes can get a loan, from 10,000 euros, which under different circumstances would hardly meet the banking criteria.

Banks
These are loans for the purchase of a first home, covering up to 90% of the commercial value of the property with a maximum limit of 150,000 euros, with a duration of up to 30 years, without a grace period, with a low or zero interest rate. The initial interest rates (from which the subsidy provided for by the program is deducted) were announced by the banks participating in the program and are as follows:

Fixed rate Floating rate Margin
Alpha Bank Euribor 3M 2.2%
Eurobank Euribor 3M 1%-4%
National Euribor 3M 2%-2.5%
Piraeus Bank Euribor 1M 2.5%
Pancreas Euribor 3M 1.5%-2%
Cooperative Bank of Epirus Euribor 3M 2%-3.5%
Cooperative Bank of Thessaly Euribor 1M 2%-4%
Karditsa Cooperative Bank 5%
Cooperative Bank of Chania Euribor 3M 1.5%-4.9%
Attica Bank Euribor 3M 2.9%-4%

The reference interest rate (Euribor) is currently hovering around 3%.

The houses for sale should be used as a main residence, have a commercial value of up to 200,000 euros. (as it is reflected in the purchase contract), have a size of up to 150 sq.m., yes
are at least fifteen years old at the time of purchase, as shown by the construction permit and are located in a residential area.

Beneficiaries
Beneficiaries of the Program are persons aged between 25 and 39 on the date of submission of the application for the loan, or spouses or persons linked by a cohabitation agreement, as long as one of them is of age on the date of submission of the application for the granting a loan, from 25-39 years old, who do not own another property suitable for their residence and, meet the income criteria.

Application
Those interested should submit an application to a bank of their choice cooperating with the Program, in order to determine their eligibility in principle. Then, and within specific time frames, the usual mortgage loan evaluation and approval process is followed.

The banks check the fulfillment of the eligibility conditions as well as the supporting documents requested for each applicant and in case they are met, they evaluate the creditworthiness of the applicant based on their relevant internal regulations and decide on the pre-approval or not of the loan within 60 days from the moment the interested party submits the application.

The pre-approval is valid for 60 days from its notification to the applicant. Within this period, the applicant must notify the bank of the requested loan amount, the property he intends to buy and the price at which he intends to buy it, and provide the documents required, so that the bank can complete the necessary check.
If the deadline in question is missed, the financial pre-approval ceases to be valid.
The signing of the loan contract and the disbursement of the total amount must have been done by the interested party within a period of six months from the approval of the application by the EBA. In the event that the above period elapses without action, the submitted application will be removed from the Portfolio. Only in cases where there is a confirmed delay in the transfer of the property may the interested party request an extension of the time for signing the Final Recipient and Disbursement Agreement by a maximum of two additional months, provided that the relevant application for registration of a mortgage or pre-notification has been submitted within the six-month period.

Documents

In order to determine whether the eligibility criteria for the program are met (age, income, ownership of other suitable property), interested parties should submit the following information:

A. BENEFICIARY

A'1. AGE OF APPLICANT:
1. Birth certificate. The
2. Copy of Police ID.

A'2. MARITAL STATUS:

1. Family status certificate issued no earlier than one (1) month before the submission of the loan application.
2. Responsible declaration of article 8 of Law 1599/1986 that he is in fact and exclusively exercising parental care of one or more minor children, (in cases of a single-parent family).
3. Copy of court decision in case of divorce or annulment of marriage or dissolution of cohabitation agreement or other exceptional cases.

B. INCOME CRITERIA

1a. Personal Income Tax Statement (E1), of the applicant's last tax year.
1b. Personal Income Tax Statement (E1), of the last tax year of the applicant's spouse/partner.
The
2a. Settlement Note/Deed of Administrative Determination of Natural Persons Tax of the applicant's last tax year.
2b. Settlement Note/Act of Administrative Determination of Personal Tax of the last tax year of the applicant's spouse/partner.
In the case of spouses or cohabiting partners, their family income is taken into account, regardless of whether they submit separate declarations or whether one of the two submits an application for a loan.

C. EXISTENCE OR UNSUITABLE PROPERTY FOR RESIDENCE

1a. Declaration of property details (E9) of the last year
1b. OR Print from taxisnet that there are no declarations of property details (E9)
1c.  Certificate of Uniform Property Ownership Tax (EN.F.I.A.) of the last year.
2a. Form E3-Statement of financial data from the applicant's business activity
2b. Employer's certificate proving the place of professional employment.
3. in case of pregnancy, relevant medical certificate

D. DISCLAIMER

Responsible declaration of Article 8 of Law 1599/1986 (A' 75), by which the applicant certifies that the information stated in the submitted supporting documents is true and complete, the supporting documents are genuine and that he has taken cognizance of the terms of the Program which fully accepts.