Ten thousand young people up to the age of 39 will be able to apply in the first quarter of 2023 to receive cheap home loans of up to 150,000 euros with an interest rate of 1.5% and a repayment period of up to 30 years. Priority will be given to cohabitants and new couples with children, while couples without children and singles will follow. More than 137,000 citizens will benefit from the "My Home" program, with a total budget of 1.74 billion euros. A relevant law was recently passed by the Parliament and the program will start by next March.

The low-interest loans with the co-financing of DYPA (formerly OAED) and the banks will cover up to 90% of the commercial value of the property with a maximum limit of 150,000 euros, for the purchase of a first home, and will concern the purchase of apartments up to 150 sq.m. and with a year of construction up to 2007. Beneficiaries can acquire a first home worth up to 200,000 euros.

The program is aimed at young people and young couples (with a religious/political marriage or with a cohabitation agreement) aged 25-39 (one of the two).

What does the mortgage program provide and what is the benefit for new couples who will join it?

In practice, those who join this program will pay a mortgage installment that will be much lower than the rent corresponding to the house they have chosen, as the interest rate will correspond to a quarter of the commercial rates. And anyway, it will be zero for families with three and many children. Most importantly, by repaying the loan they will acquire the ownership of the house.

In addition, the loan will cover a higher percentage of the property's commercial value (90%) compared to bank mortgages that usually cover up to 80%. This means that the private contribution that young people have to contribute is reduced to 10% of the value of the house instead of the 20% stipulated in the bank mortgage contracts.

Also, with this program, households that under normal circumstances would hardly meet the bank's financing criteria gain access to bank loans.

What's new in the youth mortgage scheme?

Some new elements have been added in relation to the initial announcements aimed at speeding up the implementation of the action but also at protecting against potential abuse. Specifically:

A ceiling of 200,000 euros was placed on the value of the residence that beneficiaries can purchase. This prevents the possibility of purchasing luxury constructions with the program's subsidized loan.

The purchase of the property by a first degree relative of the borrower is prohibited.

It is clarified that there will be no guarantor of the loan.

An eight-month deadline is set (six months initially with the possibility of a two-month extension) from the pre-approval of the loan to the signing of the loan agreement. In this way, delays are prevented that would tie up the loan funds at the expense of other beneficiaries who have closed the agreement to purchase the property.

The housing loan granting program foresees a ceiling of 150,000 euros on the amount of the loan. Is this limit realistic? Are there any houses at this price level?

In dozens of inner city areas, as well as in the periphery, there are properties available in this size range that can meet the housing needs of young people. Indicative: the objective values in Agia Paraskevi range from 1,500 to 2,050 euros per square meter, in Marousi 1,500-2,300 euros, in Pefki 1,300-2,250 euros, in the 4th Municipal District of Thessaloniki (Toumba) 1,250-1,550 euros.

It is recalled that the objective values concern newly built properties, while the mortgage loan program concerns properties built up to 2007 whose values are obviously lower than newly built ones.

Obviously there are much more expensive properties, but we must not forget that we are dealing with a social program to facilitate the acquisition of housing, which aims to free young people from significant costs, uncertainties and problems.

The limit of 150,000 euros as well as the ceiling of 200,000 euros in the value of the property is the golden ratio between the limits set by the market and the need to join the program as many beneficiaries as possible.

What is Covered and who can join it?

The "Coverage" program is based on the empty houses that will be released from the "Estia" program through which more than 1,000 private houses were rented by the State and made available for a transitional period to immigrants. The "Estia" program ended on December 31.

Immediately afterwards these homes (provided of course their owners agree) will be repaired if necessary at public expense and will be made available free of charge or at a very low rent to vulnerable young people aged 25-39, beneficiaries of the Minimum Guaranteed Income.

Priority will be given to multi-child, three-child and single-parent families with objective criteria (scoring). The program will be implemented by the General Secretariat of Social Solidarity and Combating Poverty of the Ministry of Labor and Social Affairs.

What is the "Renovate - Rent" Program and how is it different from "Save"?

The "Renovate - Rent" program provides subsidies for the renovation of closed houses in order to make them available for rent. In other words, it aims to increase the supply of housing by providing incentives for empty properties to be used again, once they are restored to a condition that can be used. The "Excoionamo" programs, in which thousands of homes have joined, concern properties that are already used as a first home, owner-occupied or rented.

It is recalled that through the "Renovate - Rent" program, subsidies of up to 40% (with a limit of 10,000 euros) are provided for the renovation of houses (works and materials), up to 100 sq.m. in urban centers in order to make them available for lease. The home owner must have a family taxable income of up to €40,000 and real estate up to €300,000, and the home must be declared vacant on the E2 form. The program guide has already been pre-published.

SOURCE: michanikos-online.gr