With the €2 billion of the HOME OF MY PROGRAM 2, the goal is to house 15,000 households.
By Chrysostomos Tsoufis
Apart from negotiating additional resources – beyond the €3 billion allowed by fiscal rules – the government has successfully completed negotiations for the “flagship” of its housing policy, enabling the Prime Minister to announce the HOME OF MY PROGRAM 2 from the podium of the Thessaloniki International Fair (DETH).
This program is expected to launch shortly after March 2025 and will be double the size of the first one as Greece has secured €2 billion in funding. In this way, on the one hand, the first phase of the program will be completed, during which 9,155 disbursements will have been made by the end of the year (currently, we are slightly above 7,050).
On the other hand, there will be more than enough time to complete discussions on the parameters of the program, some of which will differ significantly from their form in the first version.
All changes will be aimed at being “more friendly,” with the goal of at least 15,000 families acquiring their first home. The first major change concerns the widening of age limits. The new limits pertain to individuals up to 50 years of age (or one of the partners must be up to 50 years old).
Inevitably, since the targeting is now also aimed at couples who are deeply embedded in their professional careers and possibly have older children, the income criteria 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 loans.
A corresponding increase to €28,000 will apply for the couple’s income, up from €24,000 in the first phase, which will be increased by €4,000 per child from €3,000 per child in the first program.
For single-parent families, the income criterion increases to around €30,000.
It is still uncertain whether the amount of the loan provided – from the €150,000 of the first phase – will increase. However, the fact that with the €1 billion of HOME OF MY PROGRAM 1, 9,155 households acquired homes while the goal with the €2 billion of HOME OF MY PROGRAM 2 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 points:
- Funding will be provided for the purchase of residential properties of commercial value up to €200,000, which will be used exclusively for first homes.
- The loans – if they do not increase – will be up to €150,000 or will cover 90% of the property value with a repayment term of up to 30 years.
- The covered buildings will have an 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%, depending on what is set by each bank, is around 2%, according to the Minister of Finance. Full interest subsidy will be provided for families with three or more children as in the first phase.
- The loans will be provided without the application of the contribution of Law 128/75, which currently amounts to 0.12%.
- The borrower does not incur the costs of the loan file fees charged by each bank.
- The borrower may partially or fully repay the loan before the expiration date without any penalty or other charges.
Source: ΑΠΕ-ΜΠΕ
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