My Home II: 32 questions – answers and examples

From January 15, 2025, applications for membership in the My Home II program will begin. With the new program, which is worth a total of 2 billion euros, 20,000 beneficiaries will acquire, with a low-interest loan, their first home.

In the new “My House II” the age and income criteria have been balanced so that individuals aged 25 to 50 years old, with a minimum income limit of 10,000 euros and a maximum depending on their marital status: 20,000€ for singles, 28,000€ for married or cohabiting couples plus 4,000€ per child and 31,000€ single-parent families plus 5,000€ per child beyond the first, to acquire their own housing.

32 questions – answers
1. How is the Budget of the Programme formulated?

The budget of the “My Home II” programme is structured as follows:

Total budget: €2 billion.

Total budget of 2.2 billion euros.
Sources of funding:
1. €1 billion from the Recovery and Resilience Fund (RDF), with zero interest rate.

2. €1 billion from credit institutions.

This budget covers the financing of 20,000 beneficiaries for the purchase of their first home.

2. What is the financial advantage for the beneficiary of the Programme?

A zero interest rate is applicable for 50% of the loan from the Recovery and Resilience Fund (RDF).

The remaining 50% from the Credit Facility is charged at a reduced interest rate, which is preferential and agreed upon with the institutions when they submit their proposals.

The full interest rate subsidy often referred to refers to the competitive reduction in the cost of borrowing through the reduced interest rate achieved for the beneficiaries, relative to normal market rates.

This leads to a significant reduction in the final cost of borrowing for the beneficiary, making it more affordable and favourable compared to normal bank mortgages.

3. What is the maximum amount of financing?

The maximum loan amount granted is 190,000 euros.

The loan covers up to 90% of the value of the property as specified in the purchase contract.
In practice, this means that if the value of the property is 200,000 euros, the maximum loan amount will be 180,000 euros (90% of the value).

The borrower will then have to pay at least 20,000 euros from his own resources.

If the value of the property is 250,000 euros, the loan will be limited to a maximum of 190,000 euros, and the borrower will have to cover the remaining amount.

4. What is the possible duration of the loan?

The duration of the loan in the “My House II” programme can be from:

3 years (minimum term), to
30 years (maximum term).
5. Is there a grace period?

No, no grace period is foreseen.

6. Is collateral offered to provide financing?

The basic collateral offered to provide financing is:

Collateral: The acquired property is taken as security.
Collateral percentage: The collateral will not exceed 120% of the loan amount.
In practice, this means:

If a person receives a loan of 100,000 euros, the maximum value of the collateral (i.e. the value of the property for which a mortgage will be registered) cannot exceed 120,000 euros.

Restrictions: The provision of a personal guarantee by a third party for the loan is not permitted.
Symmetrical satisfaction: The Credit Institution and the Greek State participate at least on pari passu terms with respect to collateral, prepayments/repayments, and claims in general.

7. Is there a possibility of early repayment?

The Borrower may repay the loan in part or in full before the maturity date without any penalty or other charge.

8. Who are the beneficiaries of the Scheme?

The beneficiaries of the Scheme are:

-People between the ages of twenty-five (25) and fifty (50) years of age on the date of application for the loan,

-spouses or persons related by a civil union, if one (1) of the two (2) is aged, on the date of application for the loan, from twenty-five (25) to fifty (50) years old, provided that they do not have any other property suitable for their residence and, they meet the income criteria as reflected in the supporting documents.

9. What are the income criteria that the beneficiaries of the Program must meet?

The income criteria vary depending on the marital status of the beneficiaries and include both minimum and maximum income limits.

Income threshold:

For all categories of beneficiaries, the minimum income threshold is €10,000.

All income thresholds are subject to a minimum of 10,000 euros.
Maximum income thresholds:

The minimum income threshold is 10.0 euros.

The minimum income threshold is the maximum amount of income taxable person.
Unmarried persons: €20,000

Married or partners: €28,000 (+ €4,000 * number of children)
Single-parent families: €31,000 (+ €5,000 * Number of children other than the first)
For the €10,000 threshold, the total annual taxable income (actual or imputed) is taken into account, regardless of the source of origin.

Income from pensions and welfare benefits for dependent children are also included.

10. If two spouses or cohabiting partners make separate applications, is their income taken into account?

In the case of spouses or parties to a cohabitation agreement, the family income is taken into account, regardless of whether they file separate tax returns.

11. What is the period for calculating the income criteria?

It can be either the last tax year or the average of the last three tax years.

Last tax year:

Defined as the year immediately preceding the year of application, if the filing of income tax returns has commenced.

This is the basic reference point for calculating income.

Average of the last three tax years:

Used if the income for the last tax year exceeds the income ceiling for the category to which the applicant belongs.

It is calculated taking into account the income of the last three tax years.

12. If the average of the last three tax years needs to be calculated and the applicant’s marital status has changed in the last three years, based on which status is the average calculated?

When the average of the last three years is used, the applicant’s marital status as of the date of application is considered to have been in effect for all three of the last three tax years.

13. What are the selection criteria for properties accepted by the Program for funding?

The Program supports lending for properties that

-will be used as a primary residence
-will be located within a residential area
-shall be a single detached horizontal property or a single-family dwelling.

Its area must not exceed 150 square meters (sqm)
The 150 square meters do not include the annexes – tracks reflected in the purchase contract
The property must be older than 31/12/2007.

The value of the property, as specified in the purchase contract, must not exceed 250,000 euros
14. What does the age of the property up to 31/12/2007 imply?

The age starts to be calculated after two years from the date of issue of the building permit or its last revision, i.e. until 31.12.2005 (indicatively, if the building permit was issued on 30.9.2005, the age starts to be calculated from 30.9.2007).

When there is no building permit, then a certificate of completion is requested with an entry in the aging field “up to 31.12.2007”.

15. Are there any prohibitions in the buyer-seller relationship of a property?

The purchase of the property cannot be made by a first or second-degree relative by blood or marriage of the seller.

Also, it cannot be made by a spouse or a person connected by a civil partnership with the seller.

To confirm that the purchase of the property is not being made by a blood or lineal first or second-degree relative of the seller or by a spouse or person related by a civil partnership to the seller, a relevant civil partnership agreement and a certificate of marital status of both the seller and the buyer and the spouses/partners of both their paternal and maternal families shall be submitted, regardless of whether the loan application is submitted jointly or by one of them. If it is not possible to provide these documents, a solemn declaration under Article 8 of Law No. 1599/1986 of the buyer and the seller, stating that there is no blood or marriage relationship between them of the first or second degree, or a person related to the buyer(s) or seller(s) by a civil partnership.

16. By mentioning up to 50 years old, does it mean up to 1 day before one turns 51 or up to turning 50? That is, if they are 50 and 1 month old will they be eligible to participate?

Individuals who wish to participate in the Scheme are those who are between the ages of 25 and 50 years on the date of application for the loan. Therefore, those who have attained the age of 50 years but not 51 years are eligible to participate in the scheme. Therefore, in the case of a person who is 50 years and one month old, he/she is eligible to participate.

17. To confirm the age of the beneficiary, any type of identity card other than a police identity card e.g. expatriate, foreigner, passport, etc. is acceptable to the scheme. Similarly, a birth certificate issued in a country other than Greece, e.g. Cyprus, is also acceptable;

The age of the applicant is proved by a birth certificate or a copy of a copy of a police identity card or passport.

18. Married with a minor child who is in a consensual divorce proceeding, but the final divorce decree has not been issued, how is it assessed? Married or single-parent family;

Divorced spouses or parties to a dissolved or annulled cohabitation agreement who have no children are placed in the same income category as unmarried persons. Similarly, divorced spouses or parties to a dissolved or annulled cohabitation agreement who have one or more children are placed in the same income category as single parents.

19. The supporting documents state that submission of a Property Data Declaration (E9) and the last year’s ENFIA certificate are required for inclusion in the programme. But what happens when one does not own property and cannot print such certificates?

In the available documents, specifically in the section on the required documents, the following is stated: “To establish the existence or not of a property suitable for their residence, applicants shall submit either an Affidavit from the Single Digital Portal (gov.gr), that they do not submit Real Estate Data Declarations (E9), i.e. they do not own a property, or the printout of the last year’s formatted Property Statement, as derived from the Integrated Information System of the Property Register of the Hellenic Public Revenue Service.”

20. Is a pregnant child counted as a member of the family?

Counted as a family member at the assessment point if the existing residential property meets the housing needs of the family. Pregnancy is proved by a medical certificate.

21. Is an unfinished property eligible?

Unfinished properties are not eligible for the Scheme.

22. Is a property eligible which is encumbered by a previous loan?

In the case of a property carrying a burden (previous loan), it will be eligible for funding under the Scheme, following the usual procedure of banks, i.e. by issuing a two-line cheque in repayment of the previous loan and a certificate from the bank that had granted the loan that it consents to the removal of the burden and has no other claim.

23. What applies to the third and large families who are included in the Programme?

Third and large families enjoy special treatment in the scheme, mainly through interest rate subsidy. According to paragraph 1.11 of Article 4, third or large families are entitled to an interest rate subsidy of 50% for the part of the loan financed by the Credit Institution. This subsidy is valid for the entire duration of the loan.

If the Final-Recipient is a triple or multiple parents on the date of the funding application, the subsidy applies from the beginning of the loan.

If the status of a third or large child is acquired after the loan is made, the interest rate subsidy begins after the required documentation is submitted to the Credit Institution and applies for the remaining repayment term of the loan.

In addition, third and large families have higher income thresholds for eligibility for the program compared to other categories of beneficiaries.

24. Is there any special provision for those who wish to acquire a residence within the Regional Unit of Evros?

Exceptionally, those who have two children and acquire their first residence in the municipalities of Orestiada, Soufli, or Didymoteicho of the Regional Unit of Evros are also entitled to an interest rate subsidy. In other words, they are entitled to a 50% interest rate subsidy for the part of the loan financed by the Credit Institution, just as is generally the case with third and large families.

25. In what way do people apply for funding to obtain a loan under the Programme?

Interested persons apply for financing directly from one of the partner Credit Institutions participating in the Programme. Interested parties must provide the necessary documentation to prove their eligibility for the Programme. The date of the start of the application submission is announced on the official websites of EVSTA (https://greece20.gov.gr/), the participating Credit Institutions, and the EAT (https://hdb.gr/).

26. How are applications evaluated?

Applications are evaluated on a first-come, first-served basis.

27. Can there be a choice of another Credit Institution?

If the application is rejected or no response is received within 30 days, the applicant may apply to another Credit Institution.

28. What if the property chosen by the applicant has been subject to another application?

In case the property has already been included in an approved affiliation of another beneficiary, the applicant may, if he/she wishes, seek another property by reapplying for affiliation for the same.

29. Is there a time commitment by the Credit Institution to inform the applicant of the outcome of the assessment of the application?

Yes, there is a specific time commitment for the Credit Institution to inform the applicant of the outcome of the assessment of the application. The Credit Institution has thirty (30) days from the date of application to decide whether or not to issue a pre-approval of the loan and its terms and conditions.

30. For how long is the financial pre-approval received by the person concerned valid and what does he/she have to do thereafter to complete the application;

Duration of validity of the pre-authorization:

The pre-approval is valid for a minimum of sixty (60) days from the date of notification to the applicant.
Actions by the applicant within the period of validity of the pre-authorization:

(a) Notification to the credit institution:

The applicant must inform the credit institution of the amount of the loan that will ultimately be received. This will be based on the property it intends to purchase and the agreed purchase price.

b) Submission of supporting documents:

The applicant must provide the required supporting documents under paragraphs (i) to (k) of paragraph (i). 1, point 1, of Article 5 of the relevant CBA.

The necessary documents must be submitted under the requirements of Article 5 of the relevant CBA.

In addition, the applicant must submit any other supporting documents requested by the credit institution for the necessary verification.

Next steps after submission of the supporting documents:

The lending institution has thirty (30) days from the submission of the supporting documents to verify that the eligibility criteria of the acquired property are met.

If the criteria are met, the credit institution sends the necessary information to the Hellenic Development Bank (EAT).

31. If the Credit Institution receives a positive response to the request of the interested party, what must it do and what time limits are imposed by the programme?

Upon receiving a positive response, the Credit Institution must notify the beneficiary and take specific actions within specified timeframes to complete the process.

Informing the beneficiary:

The Credit Institution must inform the beneficiary of the inclusion of his/her application in the Program.

Carrying out checks:

The Beneficiary must give an order for a legal and technical inspection of the acquired property.
The credit institution shall carry out a legal and technical inspection of the property. If the inspection shows that the terms and conditions for granting the loan are met, the beneficiary is informed to enter into the final purchase contract for the property. Following the conclusion of the final purchase contract, the Credit Institution enters into the Final Recipient Loan Agreement.

The beneficiaries of the Program are charged with the costs of legal and technical inspection of the property, as well as the costs related to the registration of the burden on the acquired property (including but not limited to: costs for the issuance of the court decision to register a mortgage lien on the property, the fee for the registration of the mortgage lien, costs for the application for the issuance of certificates, the summary of the court decision and the issuance of the certificates, costs for the declaration of the lien rights, if the Land Registry operates
Time limits:

(a) Period of validity of the approval of affiliation:

The subordination approval shall be valid for ninety (90) days from the date of its notification to the applicant.

(b) Actions within the period:

Within 90 days, the final purchase agreement and the Final Recipient Loan Agreement must be executed.

c) Possibility of extension:

If the definitive purchase agreement has been signed but not the Final Recipient Loan Agreement, the affiliation shall be extended for an additional thirty (30) days. Prior notification of the Credit Institution is required to be provided to the NRC no later than ten (10) days before the expiration of the initial deadline.

If the deadline expires without action, the approved Program affiliation shall cease to be valid and the Program budget committed under it shall be released. In case the beneficiary wishes to resubmit a request, this will lead to a new inclusion, provided that there are resources available in the Programme budget.

Otherwise (where available Program resources have been exhausted), the application is transferred to a list and placed under the Program, in order of chronological priority, following the release of funds from the lapse of other approved submissions.

32. When can the beneficiary lease the property acquired under the program?

As a general rule, leasing of the property acquired through the Program is prohibited for the first seven (7) years from the date of signing of the Final Recipient Loan Agreement. Violation of this rule may be grounds for termination of the contract. However, there are certain exceptions under certain conditions:

A lease before the expiry of the seven years may be justified if the Final Recipient can sufficiently demonstrate, in case of an audit, the objective circumstances that made it impossible to use the acquired property as his/her main residence.

Examples of acceptable circumstances:

Finding employment in a different regional unit than the one where the property is located.

Change of service to a location in a different regional unit.

A permanent move abroad.

The Minister of Social Cohesion and Family Sophia Zacharaki speaking earlier on OPEN referred to the “My House II” programme, noting that “20,000 people, couples and families are given the great opportunity to solve their housing problem. Those interested should do their research. We estimate that at the moment there are about 60,000 properties that meet the conditions, i.e. houses and apartments of 150 square meters – not counting parking or warehouses – and a contract value of 250,000 euros. Much more than the demand, i.e. the 20,000 houses, the purchase of which will be subsidized by “My House II”, with a total budget of 2 billion euros”, as Sofia Zacharaki stressed.

The Minister gave two specific, easy-to-understand examples of the amount of the installment and the corresponding rent that someone would pay for an apartment in Nea Smyrni and an apartment in Agia Paraskevi that will be acquired through the “My House II” programme

– Example A:

An 80sqm apartment in Nea Smyrni, built in 1985, sold for 160,000 is bought by someone with a loan of 110,000 euros for 25 years.
The installment without “My House II” would be 660 euros while with the program it would be 440 euros. The benefit for the borrower is 220 euros per month. Total benefit over the 25 years of the loan of over 65,000 euros.

– Example B:

Apartment 100sqm, in Agia Paraskevi, 1987, sold today 220,000 euros is bought by someone with a loan of 150,000 euros for 25 years.

The installment without “My House II” is close to 900 euros while with the program it is 600 euros. The benefit for the beneficiary is 300 euros per month. The total benefit over the 25 years of the loan is more than 85,000 euros.
YCOISO has compiled a guide of 32 questions and answers about the “My House II” Program and useful details for beneficiaries.

According to the relevant Joint Ministerial Decision, the loan subsidy-eligible beneficiaries are entitled to receive:
– may cover up to 90% of the value of the property with a maximum loan limit of 190,000€
– no contractual interest shall be charged for 50% of the amount, co-financed by the Recovery and Resilience Fund
up to a maximum of 190,000 euros, with a maximum loan amount of 190,000 euros

no contractual interest is charged for 50%, co-financed by the Recovery and Resilience Fund
.
– is exempt from the contribution of Law 128/75
– it will be equipped with collateral security on the acquired property not exceeding 120% of the loan amount
– granted without additional collateral – guarantees of third parties,
– will provide a repayment term of 3-30 years
– will ensure the possibility of partial or total repayment before the maturity date, without any penalty or other charge

-will provide an additional 25% interest rate subsidy to third or large families, as well as to those who have two children at the date of submission of the financing application and acquire their first residence in the Municipalities of Orestiada or Souflion or Didymoteicho, which will be financed by the national part of the Public Investment Programme.

 

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