With the €2 billion of the MY HOME 2 program, the goal is to house 15,000 households.
By Chrysostomos Tsoufis
Apart from negotiating for additional resources – beyond the €3 billion allowed by fiscal rules – the government has successfully completed negotiations for the “flagship” of its housing policy, which allowed the Prime Minister to announce the MY HOME 2 program from the podium at the Thessaloniki International Fair (DETH).
This program is expected to launch shortly after March 2025 and will be double that of the first, as Greece has secured €2 billion in funds. In this way, on the one hand, the first phase of the program will be completed, during which by the end of the year there will have been 9,155 disbursements (currently we are just above 7,050).
On the other hand, there will be more than sufficient time to finalize discussions on the parameters of the program, some of which will be quite different from their form in the first version.
All the changes will be more “user-friendly,” aiming for at least 15,000 families to acquire their first home. The first major change concerns the widening of age limits. The new limits apply to individuals up to 50 years old (or one of the couple must be up to 50 years old).
Inevitably, since the targeting is now also on couples who are deep into their professional careers, who possibly have older children, the income criteria will also change:
The maximum annual income for a single person increases from €16,000 to €20,000. There is also a minimum income set at €10,000 to ensure that beneficiaries will be able to repay their loan.
Similarly, the income for couples will rise to €28,000, from €24,000 in the first phase, which will increase by €4,000 per child, from €3,000 per child in the first program.
For single-parent families, the income criteria will be around €30,000.
Whether the loan amount provided will also increase – from the €150,000 of the first phase is still undecided – however, the fact that with €1 billion of MY HOME 1, 9,155 households acquired a home, while with the €2 billion of MY HOME 2 the aim is to house 15,000 households, indicates that it is unlikely that the qualitative characteristics of the homes to be acquired will change.
Based on these:
- Financing for the purchase of a home with a commercial value of up to €200,000 will be provided, which will be used exclusively for a primary residence.
- The loans – if they do not increase – will be up to €150,000 or will cover 90% of the property value with a repayment period of up to 30 years.
- The buildings covered will have a surface area of up to 150 sq.m. and an age of up to 15 years.
- The interest rate will be 0% for 75% of the loan and for the remaining 25% according to what each bank specifies, estimated around 2% according to the Minister of Finance. Full interest rate subsidies will be provided for families with three or more children, as in the first phase.
- Loans will be provided without the application of the contribution from Law 128/75, which currently amounts to 0.12%.
- The borrower will not be charged for the costs of the loan file that the respective bank charges.
- The borrower may partially or fully repay the loan before the maturity date without any penalty or additional charge.
Source: APE-MPE
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