Friday March 27, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Lenders plan for mortgages totaling 500-600 mln this year

By Alekos Lidorikis

Demand for new mortgage loans is still low in terms of quantity, but the quality of candidates is high, say competent banking officials.

“The funds that banks have made available for loans in the housing credit sector are estimated at 500-600 million euros for the whole country for the whole of the year, which is far more than the demand for household loans, which remains particularly low,” a senior official at one of the country’s systemic banks told Kathimerini.

“What is generating optimism is that most applications for mortgage loans nowadays stand out for their quality, with some seven out of 10 gaining approval, while during the financial crisis the approval rate had dropped to just four in 10,” the same official added.

The views Kathimerini has heard tend to agree that candidate borrowers are now better informed regarding mortgage credit, particularly in terms of the necessary criteria they must fulfill in order to have their application accepted. They also appear to be more measured, turning to the banks only after having made sure they will really be able to keep up with their repayments.

Another fact that has resulted in better-quality applications is that banks have strictly capped their funding rate at 75 percent of the property’s commercial value, while before the crisis the rate had reached up to 100 percent. Lenders have advertised this policy shift via leaflets and at their branches, deterring a significant number of potential borrowers from seeking a housing loan and risking rejection because they would not be able to repay it.

Banks also place emphasis on home improvement loans, as a significant number of households have opted to renovate their existing residence instead of buying a new, bigger one. Home improvement loans require visits by a bank-appointed specialist and the submission of contracts and receipts. Before the crisis such loans went straight toward other purposes.

Statistics show just how far the housing credit sector has to go to return to normal levels: New mortgages issued last year totaled just 200 million euros, down from 2 billion euros in 2011 and 16 billion euros in the heyday of 2006. The aim now is for new mortgages to climb to 1 billion euros next year.

ekathimerini.com , Wednesday May 21, 2014 (22:47)  
Bundesbank´s Weidmann says euro zone debt in ´danger zone,´ opposes more aid for Greece
Greek future as trade hub in limbo amid Syriza split on railways
Bank deposits lost another 7.6 billion euros last month
Cosco sees rivals behind EU verdict
Greek gov´t denies finance minister Varoufakis to resign
Greece's outspoken Finance Minister Yanis Varoufakis is not planning to resign, two Greek government officials said on Friday, denying a report in Germany's Bild newspaper. "None of this is ...
Clocks go forward one hour on Sunday
Clocks should be set forward by one hour at 3 a.m. on Sunday morning to read 4 a.m. as daylight saving begins. The change will mean the loss of one hour's sleep, but also an additional hour ...
Inside News
BASKETBALL
All is well that ends well for Olympiakos
Young Ioannis Papapetrou helped Olympiakos stage an impressive last-quarter performance to beat visiting Efes Anadolu 86-75 on Thursday and bring its Euroleague losing streak to an end. The ...
BASKETBALL
Reds survive KAO Dramas scare in Piraeus
KAO Dramas gave depleted Olympiakos a scare at the Peace and Friendship Stadium on Monday, but the league leaders eventually managed to get their 20th win in 21 games. The Reds won by 10 (72...
Inside Sports
COMMENTARY
Time to get moving
More than two months have passed since the elections and the government has to stop running around in circles and adopt a program of specific reforms, with detailed calculations as to their ...
EDITORIAL
The same old story
One of those infamously bad practices that the political system has been accused of for years is being propagated by the new government today, as it is appointing party cadres and politician...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek gov´t denies finance minister Varoufakis to resign
2. Bundesbank´s Weidmann says euro zone debt in ´danger zone,´ opposes more aid for Greece
3. Clocks go forward one hour on Sunday
4. Greek future as trade hub in limbo amid Syriza split on railways
5. New Democracy´s political council convenes to decide line opposite gov´t
6. All is well that ends well for Olympiakos
more news
Today
This Week
1. New Democracy's political council convenes to decide line opposite gov't
2. Greek future as trade hub in limbo amid Syriza split on railways
3. Bundesbank's Weidmann says euro zone debt in 'danger zone,' opposes more aid for Greece
4. Clocks go forward one hour on Sunday
5. Greek gov't denies finance minister Varoufakis to resign
6. Greece optimistic on deal with euro area next week
Today
This Week
1. Next Monday is D-Day for state funds
2. Total victory is unattainable
3. EU asks Greece for more reforms to speed talks on bailout
4. PM faces Merkel amid race to detail reforms
5. Some more equal than others
6. New book by ex-US diplomat delves deeper into the recesses of Greek terrorism
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.