“My Home 2”: The New Government Decision to Support Home Ownership
The government’s decision regarding the “My Home 2” program brings positive news for households wishing to purchase or renovate their first home. It mainly concerns young couples, young individuals, or people with limited financial means, giving them the opportunity to fulfill their dream of home ownership. The program includes particularly favorable loan terms, offering significant support to eligible beneficiaries.
Financial Advantages for Beneficiaries
The main advantage of the program is the exceptionally favorable financing offered to beneficiaries:
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Zero interest rate for 50% of the loan: For 50% of the loan amount coming from the Recovery and Resilience Fund (RRF), the interest rate is zero, making the financing much more affordable.
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Interest rate for the remaining 50%: The remaining 50% of the loan, provided by credit institutions, will bear the interest rate offered by each bank based on the applicant’s creditworthiness. However, this rate cannot exceed the maximum limit set by each bank for housing loans.
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Special favorable conditions for large families or residents of specific areas: If the beneficiary has three or more children, or has two children and purchases a primary residence in the municipalities of Evros (Orestiada, Soufli, Didymoteicho), the interest on the bank’s portion of the loan will be subsidized by 50%.
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Exemption from the Law 128/75 contribution: The loans are exempt from the Law 128/75 levy, reducing the overall cost of the loan.
Maximum Financing and Terms
The program provides significant financing, depending on the property’s value and the beneficiary’s creditworthiness:
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Maximum loan amount: The maximum loan amount that can be granted is €190,000. The loan covers up to 90% of the property’s value (as stated in the purchase contract), while the remaining 10% must be covered by the buyer’s own funds.
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Loan duration: The loan term ranges from 3 to 30 years, offering flexibility for borrowers to choose the duration that best suits their needs.
Eligibility Criteria
Beneficiaries of the program must meet specific requirements:
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Age criteria: Beneficiaries must be individuals aged between 25 and 50 years as of December 31 of the application year.
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Housing criteria: Beneficiaries must not already own another property suitable for their residence and must meet the program’s income criteria.
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Special categories: The program offers special favorable conditions for families with three or more children and for individuals acquiring their primary residence in specific areas such as the Regional Unit of Evros.
Collateral and Early Repayment
The main collateral for the loans is the mortgage on the purchased property. No personal guarantee from a third party is required.
It is noteworthy that borrowers can repay the loan early without penalties or additional charges, offering flexibility and easing the repayment process.
Conclusion
The “My Home 2” program represents a major opportunity for households, enabling them to purchase or renovate their home under favorable terms and financial support. With the help of this initiative, acquiring a first home becomes more accessible, contributing to social cohesion and revitalizing the real estate market.
If you are interested in assistance finding your ideal home or need guidance to take advantage of the “My Home 2” program, please contact our office. As real estate professionals, we can support you every step of the way, ensuring you find a home that matches your needs and financial capabilities.
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