Reverse mortgage

According to the Bulgarian National Bank (BNB), the expansion of mortgage loans continues as banks in Bulgaria report an increase in housing credit. As of the end of August 2024, outstanding housing loans reached 23 billion, 203 million leva, reflecting an annual growth of 25.5%. This marks an increase from July, when mortgage loans rose by 25.1%.

The Bank of Greece is establishing a ceiling on the issue of new mortgages to prevent excessive lending.

Governor Yannis Stournaras has decided to set a maximum loan limit in relation to the value of the property and a maximum limit for servicing the debts from housing loans in relation to the total income of the borrower.

A lot of people think that a reverse mortgage is something negative when in some cases it could be the opposite. This type of loan can, under specific circumstances, be beneficial for seniors, as it allows them to tap into their home equity without having to sell their property or take on a new mortgage. 

Local banks are expecting a recovery in the mortgage loan market in 2019 after several years of very low activity, with talk of 30 percent annual growth in new credit.

This comes on top of the 20 percent increase in demand last year that took new bank financing to the housing market from 260 million euros in 2017 to almost 320 million euros in 2018.

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.