Fresh rules proposed for mortgages

Fresh rules proposed for mortgages

The Finance Ministry will take steps to avert the creation of mortgage loan and household debt bubbles in the future. According to a bill it has prepared that incorporates a 2014 European Directive into Greek legislation, the ministry is setting rules for the proper and timely information of consumers who intend to take out a housing loan.

The same bill will aim to avoid complications such as those created for borrowers who had taken out loans in Swiss francs.

Among the provisions of this draft law is that mortgage loan advertising should include representative examples of the interest rate and all charges the loan issue would entail.

In case there are unpaid dues after the liquidation of physical collateral, it also provides that the repayment will be made taking into account consumers’ reasonable living expenditure as well as any other assets they may own.

Meanwhile, the European Commission sent a reasoned opinion (which is one step before referral to the European Court of Justice) to Greece and eight other member-states on Thursday as they should have incorporated the above directive into national legislation before March 21, 2016.

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