The new program “Home for Me 2” will launch in the spring of 2025, with a budget of up to 2 billion euros, low-income criteria, and new age limits, as now those up to 50 years old will be able to apply.
-“I can officially announce today that after arduous negotiations with the European Commission, the second “Home for Me” program is starting immediately, amounting to 2 billion euros, funded by the Recovery Fund,” announced Prime Minister Kyriakos Mitsotakis from the 88th Thessaloniki International Fair (TIF).
-“If I had to make a time estimate for when the new program will start, I would say just after the first quarter of 2025. The details, according to Ms. Zacharaki, will be announced shortly, but currently, the expansion of the income criteria is being considered,” said Minister of Cohesion and Family Sofia Zacharaki in an interview with ERT a few hours after the Prime Minister’s speech at the TIF.
-“From the 16,000 that were part of the old program, we will reach 20,000 as the starting amount for a single applicant, and after,” she noted, “we will have significant increases in family income and an increase of 4,000 per child. I believe we will provide relief to many of our fellow citizens, as, as the Prime Minister said, it will concern about 15,000 couples who will be able to get their own home.”
“We expect to enable another 15,000, possibly more, young new couples; now we will expand the age limit to 50 years, because I often hear complaints from the generation of those in their forties who bore the full weight of the crisis, that we excluded them from the program and they are right. The limit will go up to 50 years, and the interest rate will be half of the commercial rate,” said the Prime Minister during his speech, adding that:
-“The first ‘Home for Me’ program was a great success, and I often meet our fellow citizens who feel this great satisfaction that they were able to acquire their own home, paying a mortgage installment that is lower than what they would pay if they were renting a house of similar specifications.”
The new cycle of the program
The new cycle of the program is expected to give a significant boost to housing credit, as the loans provided by banks in the “Home for Me 2” program will cover up to 90% of the commercial value of the property and will have a repayment duration of up to 30 years.
The basic characteristics for obtaining the new subsidized housing loans stipulate that the property area must be up to 150 sqm, the value of the property must be up to 200,000 euros, and the properties must be within residential areas.
The income criteria for eligibility in the program are expected to be broadened with an increase of the limit to 20,000 euros (from 16,000 euros for singles) and corresponding increases for couples and those with children.
Currently, the income criteria are 16,000 euros for singles and 24,000 euros for couples, with an increase of 3,000 euros for each child. Single-parent families have a maximum income limit of 27,000 euros. Changes are also being considered for the “cut-off” for the age of the property.
“Home for Me 2”: The new criteria for program beneficiaries
Income criteria
An expansion is being considered to cover as many beneficiaries as possible. Currently, the income criterion is 16,000 euros for singles and 24,000 euros per couple, with an increase of 3,000 euros for each child. Single-parent families had a maximum limit of 27,000 euros.
The income criterion will be raised from 16,000 to 20,000 euros for single beneficiaries. However, it will still require a “minimum” annual income (in the previous program it was set at 10,000 euros) to ensure the repayment of the loan. The 10,000 euro limit has almost been met following the last increase in the minimum wage, but it may remain the same and not change.
Changes are also being examined regarding the maximum income limits that applied to families with children: they were set at 24,000 euros for couples with an increase of 3,000 euros for each child, while for single-parent families, it was set at 27,000 euros with an increase of 3,000 euros for each child beyond the first.
Property criteria
It is expected that new properties, at least 15 years old, will be included to provide more options.
Loan interest rate
Interest rates are expected to be approximately 50% lower than market rates. There is provision for a zero interest rate and full state coverage of loans for large families and families with three children.
Loan terms
The loan will continue to cover 90% of the property’s value in the second cycle. It will have a duration of up to 30 years. Additionally, the European Commission sets the condition for the energy retrofitting of properties.
Age criteria
The age limit is raised, and beneficiaries will now be able to be up to 50 years old. It is noted that the first cycle covered young people aged 25 to 39.
Funding
The program is expected to be funded with a total of 2 billion euros, of which 1 billion euros will come from the European Union’s Recovery and Resilience Facility, while the other 1 billion euros will be provided by Greek banks.
Interest-free loans up to 20,000 euros
Meanwhile, a new program with a budget of 400 million euros will also be launched through Recovery Fund resources, offering loans of up to 20,000 euros, with zero interest, to owners of 20,000 homes aimed at their energy upgrading.