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By March, the first low-interest mortgages for young people up to 39 years old and the launch of the “Coverage” program


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The processes are ongoing and, within February, two Joint Ministerial Decisions (JMA) are expected to be issued, which will determine the details of the implementation of the programs

The time is counting down for the granting of the first low-interest mortgage loans to young people or young couples up to 39 years of age for the purchase of a first home, within the framework of the “My Home” program.

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At the same time, the “Coverage” program is also expected to “run”, through which the existing stock of apartments of the “ESTIA” program will be used for the implementation of a social housing program and the aim is to allocate at least 1,000 apartments as social housing to young people, aged 25 – 39 years old, beneficiaries of the Minimum Guaranteed Income, without owning a first home.

Already, the processes are underway and, within February, two Joint Ministerial Decisions (JMA) are expected to be issued, which will determine the details of the implementation of the programs. According to competent officials, the whole process is moving at an intensive pace, fully respecting the schedule that has been set, so that in March the submission of applications by the interested parties will begin and the first low-interest mortgage loans will be disbursed, after the required approval from the bank and start the “Coverage” program.

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These two initiatives are part of the government’s overall effort to substantially restart the state’s housing policy, with an emphasis on young people and vulnerable groups of citizens, with actions with a total budget of 1.74 billion euros, from which more than 137,000 citizens will benefit .

Specifically, as regards the low-interest mortgage loan program, this is aimed at young people and young couples, aged 25-39 years (even if one of the two), have either had a religious or civil marriage or have entered into a cohabitation agreement, with an annual net income of 10,000 euros up to the limits provided for the payment of the heating allowance, depending on the family situation, while they should not have another privately owned residence that covers their housing needs.

According to what has been announced, the beneficiaries can acquire, through the program, a first residence worth up to 200,000 euros, with an area of ​​up to 150 sq.m. and at least 15 years old, while the loan can reach a maximum of 150,000 euros and its duration cannot exceed 30 years.

The purchase of the property cannot be made by a first or second degree relative of the buyer and the property will be acquired in full ownership by the buyer or, in the case of spouses or common-law partners, in >50% ownership for each of them.

At the same time, it is clarified that no guarantor of the loan is required and an eight-month period will be given from its pre-approval until the signing of the loan agreement.

As the Ministry of Labor and Social Affairs has already clarified, the benefit for those who join this program is that they will pay a mortgage installment which will be much lower than the rent corresponding to the house they chose, as the interest rate will correspond to a quarter of commercial rates. It is recalled that the loan is 75% financed by the Public Employment Service (DYPA) and no interest is due on the percentage of the loan financed by DYPA, while the remaining 25% is granted by the banks. This means that 3/4 of the loan is granted interest-free, with the result that the final interest rate, which the borrower pays for the entire amount, is a quarter of the cost of a normal mortgage.

Special care is taken for those with three or many children, as for them the loan will be interest-free, while the loan will be converted into interest-free for those who, during its repayment, have three or more children.

The main thing, of course, is that, by repaying the loan, they will acquire the ownership of the house.

In addition, the loan will cover a higher percentage of the property’s commercial value (90%) compared to bank mortgages, which usually cover up to 80%. Consequently, the private participation that young people must contribute is reduced to 10% of the value of the house, instead of the 20% provided for in bank mortgage contracts.

The total budget of the program is 500 million euros, with provision for doubling, in case of exhaustion of the available resources.

Regarding the “Coverage” program, it is also noted that the program, which has a budget of 21.5 million euros, will cover the cost of renting the residence for a period of three years and any repair costs, where necessary.

Finally, the government’s actions for housing include, among others, the Social Compensation program, as well as the “Renovate-Rent” action.

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