Within August, the platform will open for new applications to the upgraded “My Home” (“Spiti Mou”) program, which provides subsidized home loans for young people aged 25 to 29. Last Friday, the relevant Joint Ministerial Decision was signed by the Minister of Social Cohesion and Family Sofia Zacharaki, the Minister of Development Kostas Skrekas, and the Deputy Minister of National Economy and Finance Nikos Papathanasis, and the program’s second phase is expected to roll out within the next 10 days.

It is noted that expanding the subsidized mortgage program was a key pre-election commitment of Kyriakos Mitsotakis. For this reason, one month after the elections, the government included “My Home 2” in the second bill it submitted to Parliament, with more favorable terms, improved eligibility requirements, and a budget of €375 million (bringing the total budget for the first and second phases to €750 million).

The process

The procedural framework for the second phase remains unchanged. Applications are submitted directly to banks and, if approved, 75% of the loan is granted interest-free (subsidized by the Public Employment Service – DYPA), while the remaining 25% is provided by the financial institutions. This means that the final interest rate paid by the borrower for the full amount is effectively one quarter of what a normal mortgage would cost, while for families with three or more children, the loan is entirely interest-free. The subsidized loan amount can reach up to €150,000 and can be repaid over up to 30 years, while the loan can cover up to 90% of the property’s market value.

The 2+1 changes

The provisions proposed by the government and passed by Parliament introduce three major changes to the program’s terms and eligibility criteria, expanding its scope:

Income: In particular, it was decided that the minimum income threshold of €10,000 for joining the program will also take into account any “presumed” (imputed) income. In this way, if a household declares an actual annual income of €7,000 but, together with imputed income, exceeds €10,000, it will be able to join the second phase even though it was excluded from the first.

The maximum income limits (actual and imputed) are adjusted accordingly:

- For unmarried young people: up to €16,000.

- For couples: up to €24,000, plus €3,000 for each child (e.g., €30,000 for a family of four).

- For single-parent families: up to €27,000, plus €3,000 for each child after the first.

Property age: The second change concerns the age of the property. Under the first phase, the property had to have been built at least 15 years earlier. With the amendment, the 15-year period is calculated from the date the building permit was issued, not from the completion date of construction.

Size: The third change relates to property size. It was clarified that the maximum limit of 150 sq.m. does not include areas listed in the purchase contract as annexes/accessory spaces.

Eligible properties

Following these three changes, the new “My Home” program will support loans only for properties that:

- Will be used as a residence.

- Have a value up to €200,000, as stated in the purchase contract.

- Have an area up to 150 sq.m., excluding certain defined auxiliary spaces.

- Have a building permit issued at least 15 years ago.

Source: Proto Thema