Eurobank: Mortgage loans for young people – financing up to 90% of the property value

The market will remain “sick.” Mortgage loans While real estate prices will move upward with a decline interest rates This is largely excluded from the estimate that it would not be a sufficient condition for a climate reversal, at least immediately.

With residential real estate prices in Attica They have increased by 70% from 2017 to date and more than 50% nationally, and it is becoming more difficult to obtain a home for the average family, even if it limits their requirements – expectations for “their own tiles” and despite the fact that rental prices Also moving up. In the end, the deciding factor in the decision to buy a home remains the relationship between the loan installment and the rent.

“My Home” program.

Banks, in addition to trying to contain interest rates, are also creating products that are as attractive as possible for those who do not have cash but want to have their own tiles with the “compass” of the supported program “My House”, which last year kept in the “Live” degree. Home loan.

after National Which has since launched the new real estate loan “My First Home” for borrowers up to 45 years of age, with financing of up to 90% of the commercial value of the property and real estate. Eurobank He’s had an identical “product” for a few days now.

In particular and Eurobank Directed to those up to 45 years old with financing up to 90% of the commercial value of the property, without loan costs until June 30, 2024 and at a 50% discount as of August 1, 2024, with the possibility of the loan term up to 35 years, provided that the borrower’s age does not exceed 75 years in End of the loan (for example, if the borrower is currently 45 years old, the repayment period cannot exceed 30 years).

At the same time, it is possible to pay interest only in the first two years so that the installment is low, and for those who choose a fixed interest rate for more than 10 years, they will receive a discount of 10 basis points compared to the bank’s corresponding residential products.

In the past, in an attempt to stimulate demand for home loans, banks approached applicants for the subsidized “Bayti” program, and they were ultimately unable to join it, but rather entered the process of considering buying a first home.

However, there are many who are particularly concerned about the prospect of applying for a loan because of the rise in house/apartment prices, and secondly because of the expectation of the emergence of the second new “My Home” program. Of course, the loan installment relationship remains crucial in the decision to buy a home – Leasing.

cash Money

Data on real estate sales also shows that a very large percentage are made using cash that comes either from savings or from the sale of another asset.

In fact, even when there is the possibility of using cash (deposits) as collateral in a mortgage loan, which significantly reduces the cost (the potential borrower essentially pays the difference between the interest rate on the deposit), potential buyers do not give in to the temptation to apply for a mortgage loan .

This is due, according to banks’ estimates, to the ten-year crisis and the explosion of “red” loans, as everyone who can afford to stay away from banks does so. Who can’t – of course – should seek as little exposure to bank lending as possible.

It is characteristic that in 2023 the average disbursement of a loan secured by a residential property decreased to 68,700 euros, compared to 78,800 euros in 2022. It is noted that 97.4% of these loans are intended for purchase for the purpose of owning a home, according to data from the Bank of Greece.

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It is characteristic that in 2023, disbursements of loans secured by residential real estate amounted to only €1 billion (14,621 contracts), a decrease of 9.5% compared to 2022, when the annual flow of housing loans in 2005-2007 averaged €12 billion. .

The majority of new payments have a long fixed interest rate period, protecting borrowers from further rises in base interest rates – plus it is established that there is no return to zero interest rates in the medium term – with an interest rate of 55% fixed for the first Once 10 years and 17% of new loans are for 5-10 years.

Loan payments with a fixed initial term with an interest rate less than or equal to one year represent only 11.6% of all new loans.

The average loan duration at issuance is 23.7 years. 20% of new loan agreements have a term of 15 years, 37% of them have a term of 15 to 25 years, while 38% of them have a term of 25 to 30 years, and the remaining 5% have a term of 30 years.

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