{"id":6845,"date":"2022-11-03T10:48:36","date_gmt":"2022-11-03T10:48:36","guid":{"rendered":"https:\/\/dev-espa.summerize.io\/my-house-guide-to-cheap-mortgages\/"},"modified":"2023-08-25T08:23:02","modified_gmt":"2023-08-25T08:23:02","slug":"my-house-guide-to-cheap-mortgages","status":"publish","type":"post","link":"https:\/\/espa.io\/en\/my-house-guide-to-cheap-mortgages\/","title":{"rendered":"My house: A guide to cheap mortgages"},"content":{"rendered":"\n
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Answers to some key questions about the new housing policy bill were issued by the \n Ministry of Labour and Social Affairs<\/a>\n<\/strong>, which aims to facilitate access to affordable and quality housing for the My House<\/strong> programme. In particular:<\/p>\n\n

1. What does the Home Loan Scheme, My Home, provide<\/strong> and what is the benefit for young couples who join it?<\/strong><\/h2>\n\n

Practically everyone who joins the My House programme, they will pay a mortgage installment that will be much lower than the rent corresponding to the house they chose.<\/strong> The interest rate will correspond to a quarter of commercial interest rates.<\/strong> And anyway it will be zero<\/strong> for three children<\/strong> and Families with many<\/strong> children<\/strong>. Most importantly, by repaying the loan they will acquire the ownership of the house. In addition, the loan<\/strong> will cover a higher percentage of the commercial<\/strong> value of the property (90%) compared to mortgage loans from banks that usually cover up to 80%.<\/strong> This means that the private participation<\/strong> that young people must contribute is decreasing<\/strong> strong in the 10% of the value of the house. In the banks’ contracts, the percentage provided is set at 20.<\/strong><\/p>\n\n

Also, with this program, households<\/a> that gain access to bank loans<\/strong> under normal circumstances would hardly meet<\/strong> the bank’s financing criteria gain access to bank loans.<\/p>\n\n

2. What are the new elements in the<\/strong> Youth<\/strong> Home Loan<\/strong>Scheme<\/strong>?<\/strong><\/h2>\n\n

Some new elements have been added in relation to the initial announcements that aim to speed up the implementation of the action<\/strong> but also to protect against potential abuse. Specifically:<\/p>\n\n

\u2013 A ceiling of 200,000 euros was placed on the value of the residence that beneficiaries can purchase. This prevents the purchase of luxury construction with the subsidised loan of the programme<\/strong> My house<\/strong>. <\/p>\n\n

\u2013 The purchase of the property by a first degree relative of the borrower is prohibited.<\/strong><\/p>\n\n

– It is clarified that there will be no guarantor of the loan.<\/strong><\/p>\n\n

\u2013 There is an 8-month deadline (6 months initially with the possibility of an extension of 2 months) from the pre-approval of the loan until the signing of the loan agreement. This prevents delays that would bind the loan funds at the expense of other beneficiaries who have closed the agreement to purchase the property.<\/strong><\/p>\n\n

3. The housing loan granting program provides for a ceiling of 150,000 euros on the amount of the loan. Do you consider this limit realistic? Are there any houses at this price level?<\/strong><\/h2>\n\n

In dozens of inner city areas and in the periphery there are properties<\/strong> available<\/strong> in this size class<\/strong> that can meet the housing needs of young people. Indicative:<\/p>\n\n