The new program “My Home 2” will be launched in the spring of 2025, with a budget of up to 2 billion euros, low income criteria, and new age limits, as interested parties up to 50 years old will now be able to apply.
– “I can now officially announce that after very strenuous negotiations with the European Commission, the second program ‘My Home’ is starting immediately, amounting to 2 billion euros, with resources from the Recovery Fund,” announced Prime Minister Kyriacos Mitsotakis from the 88th Thessaloniki International Fair.
– “If I had to make a time estimate for when the new program will start, I would say shortly after the first quarter of 2025. According to Ms. Zacharaki, the details will be announced soon, but at this moment, the expansion of the income criteria is being considered,” said Minister of Cohesion and Family Sofia Zacharaki in an interview with ERT, just hours after the Prime Minister’s speech at the Fair.
– “From the 16,000 that was the old program, we will reach an initial amount of 20,000 for the sole applicant and then,” she noted, “we will have significant increases in family income and an increase per child by 4,000. I believe we will give a breath of fresh air to many of our fellow citizens, as the Prime Minister said it will concern about 15,000 couples, who will be able to get their own home.”
“This will enable an additional 15,000, or even more young new couples, now we will expand the age limit up to 50 years old,” because I often hear complaints from the generation of forty-somethings who bore the brunt of the crisis, that we excluded them from the program and they are right. The limit will go up to 50 years old and the interest rate will be half of the commercial rate,” said the Prime Minister during his speech and noted that:
– “The first ‘My Home’ program was a great success and I often meet citizens who feel a great satisfaction that they were able to acquire their own home, paying a mortgage installment lower than what they would pay if they rented a property 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 offered by banks through “My Home 2” will cover up to 90% of the commercial value of the property and will have a repayment period of up to 30 years.
The basic characteristics for obtaining the new subsidized housing loans foresee that the area of the property is up to 150 sq.m., the value of the property is up to 200,000 euros, and the properties must be located within a residential area.
The income criteria for inclusion in the program are expected to be expanded, increasing the limit to 20,000 euros (from 16,000 euros for singles) and a corresponding increase of the limits 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” in the property’s age.
“My Home 2”: The new criteria for the program’s 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 increase 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 loan repayment. The 10,000 euro threshold has almost been covered after the last minimum wage increase but may remain the same and not change.
Changes are also being considered for 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 at 27,000 euros with an increase of 3,000 euros for each child beyond the first.
Property criteria
New residences at least 15 years old are expected to be included for more options.
Loan interest rate
Approximately 50% lower rates than those in the market. There is a provision for zero interest rates and full state coverage of loans for large families and families with three children.
Loan terms
The loan will still cover 90% of the property’s value in the second cycle. It will have a duration of up to 30 years. Meanwhile, the European Commission requires energy upgrades of the properties as a condition.
Age criteria
The age limit increases, and beneficiaries will now be able to be up to 50 years old. It is noted that in the first cycle, it covered young people aged 25 to 39 years.
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 Fund, while the other 1 billion euros will be provided by Greek banks.
Zero-interest loans up to 20,000 euros
At the same time, a new program with a budget of 400 million euros will run through Recovery Fund resources, offering loans up to 20,000 euros with zero interest to owners of 20,000 residences aimed at their energy upgrade.