The market will be “sick”. Mortgage loans At the same time, real estate prices move upwards by depreciating Interest rates It has been largely discounted to estimate that this may not be a sufficient condition for climate change, at least in the immediate future.
With prices of residential properties in Attica Up 70% year-to-date from 2017 and more than 50% nationwide, it’s becoming increasingly difficult for the average family to afford a home, even if it limits their needs – expectations for their “own home” and rental prices are also moving upwards. And ultimately, the deciding factor in the decision to buy a house remains the relationship between loan installment and rent.
“My house” project
Banks, in addition to trying to control interest rates, create products as attractive as possible for those who do not have money, but the subsidy program “My House” for those who want to buy their own tiles with “Compass” was observed last year. “Direct” grade of home loan.
After National It recently launched a new mortgage loan called “My First Home” for borrowers up to 45 years of age and offers financing up to 90% of the commercial value of the property. Eurobank There has been a related “product” for a few days now.
Especially and Eurobank Up to 45 years of age by financing up to 90% of the commercial value of the property with no loan costs till June 30, 2024 and 50% discount from 1/8/2024 with loan tenure. It can reach up to 35 years as long as the age of the borrower does not exceed 75 years at the end of the loan (eg if the borrower is currently 45 years old, the repayment period cannot exceed 30 years).
At the same time, only interest can be paid in the first two years, making the installment lower, while those opting for a fixed interest rate over 10 years will be given a comparative discount of 10 basis points. Bank related household products.
In the past, banks, in an attempt to stimulate demand for home loans, approached applicants for the subsidized “My Home” program who ultimately could not join but entered the process of thinking about buying a first home.
However, many are particularly wary of the prospect of applying for a loan due to the high prices of houses/apartments and the prospect of a new, second “My Home” scheme. Of course, the loan tenure relationship is decisive for the decision to buy a home – Rent.
in cash
Data on real estate sales also show that a much larger percentage is made from savings or from the sale of another property.
Indeed, although the possibility of using cash (deposits) as collateral in a mortgage loan greatly reduces the cost (the potential borrower essentially pays the difference between the deposit-subsidized interest rate) potential buyers are not tempted. Apply for a mortgage loan.
This, according to the banks, is due to the ten-year crisis and the explosion of “red” loans, so that anyone who can stay away from the banks does so. And who cannot – of course – have as little exposure as possible to bank loans.
It is characteristic that in 2023 the average disbursement of a loan obtained through residential property decreased to 68,700 euros, compared to 78,800 euros in 2022. For data from the Bank of Greece.
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The distribution of loans secured by residential property in 2023 decreased by €1 billion (14,621 contracts) by 9.5% compared to 2022 when the annual flow of home loans averaged €12 billion in the period 2005-2007. .
Most of the new offers have a longer fixed rate period, which protects borrowers from further rises in prime rates – and is firmly established that there is no return to zero rates in the medium term – with a fixed rate starting at 55%. 17% new loans for 10 years and 5-10 years.
Lending with an initial fixed rate term of less than or equal to one year accounted for just 11.6% of all new loans.
The average loan tenure for issuance is 23.7 years. 20% of new loan agreements are for up to 15 years, 37% for 15 to 25 years, 38% for 25 to 30 years and the remaining 5% for more than 30 years.
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