Mortgage loan

Rising interest rates seriously hurt mortgage credit, affecting both the demand and supply for mortgages. This stems from the figures of the Bank of Greece, based on which mortgage disbursements fell in the second quarter of 2023 by 10.7%, while in the same period the number of loans granted showed a greater decline of 12.4%.

The Banking Regulation and Supervision Agency (BDDK) has announced a decision to tighten the conditions for some housing loans as part of the measures aimed at strengthening macro-financial stability.

The loan-to-value ratio has been tightened by 75 percent and set at 22.5 percent from a previous 90 percent for those who want to buy a second home.

Interest rates on home loans remain at around 2.5%. This is shown by the latest BNB data. However, the cost of loans for current consumption is increasing by 1% for July compared to June.

Bulgaria is again lagging behind the European trend for the growth of interest rates, but by the end of the year an increase of up to two percent is possible.

And this is the growth achieved in the past year. Official statistics are more than stern and in percentages show growth that's more than doubled, as reported by Blic.

In the years ahead, Greece should take great care regarding its enthusiasm for North American-style mortgages as a vehicle for encouraging homeownership. 

It should look no further than Canada, where a recent report says Canadians are carrying the highest personal debt levels of all G7 countries - much attributed to homeownership. 

Interest rates on business loans dropped in June, while consumer loans and mortgages became more expensive, Bank of Greece data show.

The share of cash in real estate purchases is increasing, as the relevant data show. The sharp increase in lending rates has sharply reduced the demand for mortgages, but at the same time transactions continue to move upward, along with sales prices, which are breaking one record after another.

Τhe Cypriot cabinet on Wednesday approved the "Rent vs Installment Scheme," government spokesperson Konstantinos Letymbiotis announced following the conclusion of the council. The European Commission's Directorate-General for Competition also granted approval on July 6.

With an interest rate hike by the European Central Bank in July considered virtually certain, Greek borrowers will nevertheless remain largely unaffected, provided they remain up to date with their mortgage payments, as a result of the banks' reward programs for performing borrowers.

Only 4,706, compared to the initial demand of 36,544 applications submitted, under the "Spiti Mou" (My Home) program for mortgage interest subsidies, have secured the much-desired approval.

These are cases where the right property for purchase has been found, which is also the important factor that makes the operation of the program difficult, given that demand is guaranteed.