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“My Home” Housing Program for Young People

“My Home” Housing Program for Young People

 “My Home” is a housing loan financing scheme that provides low interest funding, through partnering credit institutions. Hellenic Development Bank, in collaboration with the Public Employment Service Authority, offer the opportunity to individuals aged 25-39 who meet the program’s set eligibility criteria, to access low interest funding and purchase their primary residence. 

The Fund involves participation of the Public Employment Service Authority by 75% with zero interest capital and 25% participation of the partnering banks. Full interest rate subsidy can be provided to families with three or more children, at the time of application or at a later stage and through the lifetime of the loan. In addition, the loan file management fees applied by the partnering banks are covered by the Fund.

What is the purpose of the Program?

The aim of the Program is to assist young individuals and couples in acquiring financially affordable housing by providing low-interest loans. Additionally, the goal is to reduce the existing stock of old and vacant properties by offering the opportunity for their utilization and further improvement. Finally, it provides further incentives to families with three of more children by providing full interest rate subsidy, thus reducing further the mortgage servicing costs and contributing to the state’s effort to address the demographic challenge. 

Who is it for?

The program is intended for individuals and couples aged between 25 and 39 who do not declare ownership of suitable principal residence and   meet the income and rest eligibility criteria.

What is the co-financing scheme?

The Fund provides 75% of the loan at zero interest, with the partnering banks providing the remaining 25%.  

What is the budget?

The total potential budget of the Fund is set at €1bln, comprising of €750mln participation of the Public Employment Service Authority and €250mln participation of the commercial partnering banks. Furthermore, an additional amount will be provided by the Public Employment Service Authority to cater for the coverage of the interest rate subsidy and the associated loan management costs of the partnering banks. 

What are the financial benefits?

  1. Zero Interest Rate Loan for 75% of the capital subsidized by the program, with the possibility of the interest rate being zero for the entire loan amount in the cases of new couples with three or more children at the time of application for financing, or new couples who become parents of three or more children during the loan repayment period (up to 30 years).
  2. Coverage of the administrative cost of the loan file, charged by the respective Credit Institution to the borrower.
  3. Loans will be provided without the levy of the contribution specified in Law No. 128/75, which currently stands at 0.12%.

What is the maximum loan amount?

The loan must be up to 90% of the purchase contract with a maximum amount of €150.000.

What is the required collateral?

The acquired property forms the loan collateral at a coverage rate that cannot exceed 120% of the loan amount. No additional or third party guarantees are allowed.

What is the loan duration?

The loan term ranges from three (3) to thirty (30) years.

How is the loan disbursed?

The loan agreement must be signed, and the disbursement of the total amount should be completed by the interested party, within a period of six months from the approval of the application by the relevant authority (HDB). In cases where this time frame elapses without any action, the application is removed from the portfolio. Only when there is a confirmed delay in property transfer, or other delays occur for reasons beyond the control of the buyer, can the interested party apply for an extension of the signing of the Final Beneficiary and Disbursement Agreement. The extension granted shall not exceed the period of  two months at most, provided that the relevant application for mortgage registration or annotation has been submitted within the initial six-month deadline.

How do I submit an application?

To participate in the program, the interested party must apply to the partnering Banks.

The partnering Banks are:

  • Alpha Bank
  • Cooperative Bank of EPIRUS
  • Cooperative Bank of THESSALY
  • Cooperative Bank of KARDITSA
  • Cooperative Bank of CHANIA