My Home has little impact

My Home has little impact

Only 4,706, compared to the initial demand of 36,544 applications submitted, under the “Spiti Mou” (My Home) program for mortgage interest subsidies, have secured the much-desired approval.

These are cases where the right property for purchase has been found, which is also the important factor that makes the operation of the program difficult, given that demand is guaranteed.

According to the relevant data from banks, out of 36,544 applications, seven out of 10 have been evaluated (25,573). Of these, pre-approval has been given for 69%, or 17,606, and of those have reached the final stage, 4,706 have been approved. The remaining applications, or 30%, were rejected, as those interested did not meet the requirements.

The program is aimed at young people aged between 25 and 39 years of age who are interested in acquiring a residence, with the property’s year of construction being up to 2007, and not later, with an area of up to 150 square meters and a price of no more than 200,000 euros.

As seen from the outset, the properties that met the relevant criteria, responded to the needs and desires of the buyers and were within their financial capabilities, and especially their creditworthiness, were few and far between. They were limited mostly to areas in the capital’s center and the western suburbs and much less in other areas, where demand is greater, such as the northern and southern suburbs. That is why while there are 17,066 pre-approvals and the number of loans granted has not exceeded 4,706 – i.e. only 27.5%.

However, this number is likely to be even lower in the end, as reservations are being expressed about how many properties will eventually be sold through the program, given that some are likely to have urban planning problems, while others have been withdrawn by the owners, who consider they can secure a higher price or don’t want to wait around five to six months to finally collect the full amount due from the borrower’s bank. 

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