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+30 6977175045
An important point in the considerations is the financing of the house in Greece. Many buyers take a mortgage with the equity of a house in the Netherlands or Belgium, but also in Greece there are banks that provide mortgages to foreigners. As a non-resident you can get a mortgage in Greece, but it is important to know how the process works.
We give you all the steps necessary to get a mortgage in Greece, but the procedures can differ per bank and can change every year. Mortgage rates in Greece generally range from 3.0% to 6.5%, depending on the bank, and the mortgage conditions will vary slightly.
In general, however, there are a few important aspects that often occur:
1.Maximum loan – In Greece, there is usually a limit to the amount a person can borrow in relation to the value of the property. This limit can vary, but in most cases it is between around 50% of the value of the house.
2. Interest rates – The interest rates for mortgages in Greece can vary depending on the lender and market conditions. It is wise to compare different lenders to find the best interest rate.
3. Term – The term of mortgages in Greece is usually between 10 and 30 years, depending on the terms of the lender and the financial situation of the applicant.
Despite Greece’s popularity as a second home and retirement destination, it has been impossible for people living outside Greece to get a mortgage. However, Greece’s improving economy and investment incentives – such as the golden visa – have made the country much more attractive to international buyers.
Banks in Greece did not target this market with specific financing instruments and procedures, but this has changed and Eurobank Group is among the Greek banks that have started providing mortgages to non-residents. The International Clients department provides the basis.
Private individuals from abroad can obtain a mortgage from €10,000.
For foreign non-residents this is 65%, for Greek and Cypriot non-residents 70%.
The term of the mortgage is determined on the basis of the monthly payments of the mortgage plan chosen by him (fixed, variable or mixed). The maximum term for foreign non-residents is 15 years and for Greek or Cypriot non-residents a maximum of 30 years.
At the time of writing, a fixed rate deal is around 4.6%.
The rate can be variable, fixed or mixed (combination of both). A typical loan of €65,000 (65%) on a €100,000 property with a 15-year fixed rate comes with a monthly payment of around €500.
A mortgage of €195,000 (65%) on a €300,000 property (with a 15-year fixed rate) costs €1,500 per month.
Mortgages are provided to purchase, build or renovate a home in Greece.
The standard fee charged by the bank is €750 for the legal and technical due diligence, of which €250 is paid in advance after the client has agreed to the financial pre-approval. Additional fees are paid for public services of the local land registry office, amounting to approximately 0.875% of the pre-notation (loan) amount. An additional €300 is charged for lawyer fees (the application procedure can be managed from start to finish by the client’s lawyer).
There is the possibility of early repayment – in whole or in part – via a quick and easy procedure. During the variable interest period you can make a deal without penalty.
By e-mail you can send a copy of your passport and two tax assessments or bank statements from previous financial years.
An annual property insurance for the property in case of fire or earthquake is mandatory. In addition, if the client so wishes, a life insurance of the borrower and an insurance on the contents of the house can also be arranged.
The mortgage amount that non-residents can get usually does not exceed 60% of the commercial value of the house, depending on the bank. The amount of your mortgage is determined by a number of variables.
First, the bank usually checks your personal information: tax returns, income, financial history, mortgage value and collateral. Then, the bank carries out a “technical check” on documents relating to the property, such as topographic maps, title deeds and building permits.
• You need a Greek tax number (AFM) and a bank account in Greece.
• Compared to the amount you want to borrow and the monthly amount you pay, your family income must be sufficient.
• You must be under a certain age, usually 70-75. The age range also varies by bank.
Most banks in Greece require you to provide the following documents to get a mortgage: