In the next few days, it is expected that the arrangements of the banks’ plan, which is in the final stage of processing and provides for the “freezing” of Euribor interest rateon the basis of which the variable interest rates in housing loans are formed and has led to significant increases in borrowing costs in recent months.

It will also concern variable rate mortgages, linked to the ECB’s intervention rate.

The banks’ plan, which was one of the topics discussed at the meeting of bank representatives with Finance Minister Christos Staikouras, who on a constant basis urges the banks to take actions in this direction, includes all housing loans, both those relating to the first home as well as loans for a secondary home, provided that these are loans that have a floating interest rate and are serviced normally.

It also includes red loans that have been settled and are being serviced

It also includes “red” mortgage loans that were regulated and are now serviced normally, as well as repair loans granted in addition to mortgage loans. A practice that was common in the past when financing for the purchase of real estate was even with zero equity of the borrower and today has changed as banks provide loans for the purchase of real estate at a rate of between 70%-80% with the rest being covered by equity of the borrower.

The majority of mortgages, according to convergent estimates, more than 90% of the number of loans, they have in their portfolios are with variable interest rates, taking into account the fact that the shift to fixed interest rates took place during the last two years.

By freezing mortgage rate rises from Euribor rises, it is expected to give borrowers a breather and sense of security and avoid any possibility of a new generation of bad loans. Bad loans that banks have managed to reduce to single digits , gradually approaching the European average.

The plan will take into account and will strictly follow the supervisory rules set by SSM and the Competition Commission, as is done every time such actions and initiatives are undertaken.

The number of loans that will be affected by these new announcements, which are expected probably before Easter, according to converging bank estimates, is between 400,000-500,000 loans. Taking into account the fact that some borrowers have a repair loan along with a mortgage, the number of borrowers who will benefit from this plan amounts to approximately 350,000.

The submission of applications to the banks by young people and young couples has also started

Besides, from Monday, April 3, the submission of applications to the banks by young people and young couples for the granting of interest-free or low-interest loans, with an interest rate corresponding to a quarter of the normal market interest rate, for the acquisition of a first home began. Through the program, more than 10,000 beneficiaries can, within the year, acquire a private residence, with a monthly installment significantly lower than that corresponding to market mortgages, as 75% of the capital is granted by the Public Employment Service (PYPA) it is interest-free, while for those with three children and many children (and those who acquire this status during repayment) the loan is granted in its entirety without interest. Thus, borrowers will have a significantly lower installment compared to mortgage loans granted by banks and, accordingly, a much smaller burden than any increases that have been or may be made in bank interest rates, due to the international crisis.

The housing loan program is part of the government’s “My Home” housing policy, established by Law 5006/2022. The banks National, Piraeus, Alpha, Eurobank, Attica Bank, Pankritia, as well as the Cooperative Banks of Epirus, Thessaly, Karditsa and Chania, which announced the initial interest rates of the subsidized loans, participate in the program.

Beneficiaries of the program are people aged, on the date of submission of the loan application, from 25 to 39 years old or couples (one of them must meet the age criterion), with criteria that have already been announced.