Housing scheme gets under way
The Public Employment Agency (DYPA)’s Spiti Mou (My Home) program is set to launch on Monday with the participation of all systemic banks. The program foresees 5,000 loans being taken out by young people and couples aged 25 to 39, with the interest rate limited to a quarter of the normal market rate. If a couple has three or more children, the interest rate will be zero.
The program has a total budget of 500 million euros (although this could increase) and aims to benefit 10,000 people (couples or families).
The applications to the banks will start on April 3, as announced on Friday by Labor Minister Kostis Hatzidakis and Minister of State Akis Skertsos. The two ministers estimate that the beneficiaries could even be able to acquire a private residence by the end of the year.
As for the monthly installment, this will be significantly lower than that on normal housing loans on the market, as 75% of the capital granted by DYPA is interest-free, while for those with three children or more (and those who acquire this status during the repayment period) the loan will be granted in its entirety interest-free. In this way, the borrowers will have to pay significantly lower tranches compared to the housing loans granted by the banks and, accordingly, a much smaller burden than any increases that have been or may be made in bank interest rates due to the international crisis.
For example, for a loan of €100,000 with a repayment period of 30 years and an interest rate of 5.8%, the monthly installment is €342.87, compared to €587.52 without the subsidy.
If the borrower has three children or more, then the loan will be interest-free and the installment limited to €277.78.
The following banks are participating in the program: National, Piraeus, Alpha, Eurobank, Attica Bank, Pancreta, as well as the Cooperative Banks of Epirus, Thessaly, Karditsa and Hania.
Beneficiaries are people from 25 to 39 years old (on the date of submission of the loan application), or couples (one of them must meet the age criterion).
