Finding a home today, either to rent or to buy, may have become quite difficult. At the same time, with the strict criteria for granting loans set by the banks, too many interested parties are excluded, as a result of which they cannot even buy a house and live in rent. But this will soon change - even if only for a few - with the new My Home state program.
"My House" is a public invitation that DYPA addresses to young people aged 24 to 39 and comes to offer 10,000 separate low-interest loans.
Below you will see the main points of attention, the criteria and whether it is worth getting a loan with the help of the state.
Low interest mortgages - Conditions
Young people between the ages of 24 and 39 are eligible to participate in the housing program. They must also have:
- individual income from 10,000 to 16,000 euros or
- family up to 24,000 euros, increased by 3,000 euros for each child.
The loan is 75% financed by DYPA and there is no interest on this loan percentage. The remaining 25% is provided by the banks.
📍 So 3/4 of the loan is granted interest-free, with the result that the final interest rate paid by the borrower for the total amount is 1/4 of the cost of a normal mortgage loan .
The houses for which you will be able to get a loan must be more than 15 years old with a construction permit until 2007, and not exceed 150 square meters. Therefore, the program targets the purchase of not so marketable or newly built homes.
Example with a 4.7% mortgage rate
Let's say you are requesting a loan of 150,000 euros, the maximum amount you can request with the My Home program, in order to buy a new house worth 200,000 euros.
The interest rate will be set as follows:
- Instead of an interest rate of 4.7% for 30 years, if you are a beneficiary of the program you will pay an interest rate of 1.17%!
- If you are a couple with three children, with at least one of the two adults aged up to 39, the interest rate will be zero , as the loan is fully covered by DYPA.
Which banks give low interest loans to young people?
The banks that offer the My Home loan and to which you can apply are the following:
- Attica Bank
- Eurobank
- National
- Piraeus Bank
- Pankritia Cooperative
- Epirus Cooperative Bank
- Bank of Thessaly Cooperative
- Bank of Karditsa
- Cooperative Bank of Chania
My Home Program: Application for the low-interest loan
Here are some frequently asked questions about the application and the process.
– How do I apply?
You submit an application to the bank to first determine your eligibility, along with some supporting documents. Banks check the following:
- age limit,
- income, and
- lack of property suitable for residence
If the above are met, then they also evaluate your creditworthiness based on their internal regulations and decide on the pre-approval.
– How long does the loan approval take?
The bank informs you of the pre-approval after 60 days at the most and you must notify the bank within the deadline of another 60 days :
- the requested loan amount, which cannot exceed 150,000 euros,
- the property you intend to buy and its price, which cannot exceed 200,000 euros according to the purchase contract, and
- to present the documents required for the bank to carry out the necessary control.
If all the necessary supporting documents are submitted on time, then following the bank's communication with the Hellenic Development Bank (EAT), the EAT freezes the amount of the requested loan until the final approval or partial approval or rejection of the loan is completed.
Final loan approval can take 6 to 8 months.
– Do I pay for the legal and technical audit?
The legal and technical inspection of the property is another procedure carried out by the bank. So after the checks are done, the bank notifies the results to the ETA. Finally, if the conditions are met, he also submits the relevant loan agreement.
The costs for the controls are, for example:
- For Alpha Bank at 420 euros
- For Piraeus Bank 500 euros, and
- For the Cooperative Bank of Epirus 400 euros.
On the website of DYPA there is detailed all the relevant information, for all the cooperating banks of the My Home program.
– When do I sign the My Home loan contract?
Within 6 months of EATA's approval, the following shall be carried out:
- contract signing,
- registration of a mortgage or mortgage note on the property that will secure the loan, and
- disbursement of the total amount of the contract.
Once the loan is approved, and before its disbursement, the bank is obliged to inform EAT and DYPA of the control it carried out in relation to the eligibility of the beneficiary and the property to be acquired.
Also, banks with the conclusion of a housing loan ask the customer to insure the mortgaged property based on specific coverages. Therefore, it is good to know that you will also need mortgage insurance for the residence you are going to mortgage.
Finally, is the My Home program worth my attention?
In this period a grant is given to strengthen the solar group 24 to 39. It is therefore good to check the conditions carefully, so as to see what suits you best. That is, if you are already looking for a mortgage loan, then yes, look at the My Home program.
What can you do to find a mortgage that suits you? Well, it's simple and at no cost. Visit our platform, where you will find the mortgage comparison tool. Afterward:
- Compare mortgages
- Choose the one you consider more accessible
- Click on I want this loan
- You are now on the Mortgage Contact Form, where
- Fill in your information & a specialized Real Finance advisor will contact you
❗ The help you will receive will be extremely useful and free. It's natural to get confused by some banking terms. That is why a specialized consultant can direct you to the most advantageous option and inform you of conditions that you may not have realized existed.
Do you want to know more about mortgages and the My Home program? Then, all you have to do is listen to the new So-Lysame the Podcast , which is dedicated to mortgages!
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