Who gets the bank subsidy
Lenders announced the details and the criteria of the support program for mortgage holders
Borrowers with housing loans and small businesses with loans secured against a main residence stand to benefit from the support program for vulnerable natural persons that the banks have agreed with the Ministry of Finance.
Based on the details of the program the four systemic banks announced after their meeting with Finance Minister Christos Staikouras, the support will take the form of a subsidy of 50% of the increased installment of the loan, resulting from the rise of the Euribor, which after the new ECB interest rate hike has risen to 2.1%. The first home support program will exclusively cover vulnerable natural persons based on the specific income and property criteria provided by law, whose number is estimated at around 30,000.
In order for an individual to be classified as vulnerable, their total income must not exceed 7,000 euros for a one-person household, increased by €3,500 for each additional member of the household and up to the amount of €21,000 per year, regardless of the composition of the household. The total taxable value of their real estate must also not exceed the amount of €120,000 for a one-person household, increased by €15,000 for each additional member and up to the amount of €180,000. Finally, the total amount of household deposits and/or the current value of stocks, bonds etc should not exceed €7,000 for a one-person household, increased by €3,500 (or €7,000 for a single-parent family) for each additional member of the household.
As the subsidy will cover half of the installment increase, if the installment of the mortgage used to be €300 and after the Euribor grew to €360, the banks will cover €30. The program horizontally covers all banks, systemic and non-systemic, as well as all loans transferred to funds for borrowers meeting the above criteria.
The subsidy will start from January 2023, but will retroactively cover the previous increases made since last July, when the rise in the Euribor started, and apply to all mortgages for the main residence with a floating rate.
