 Mortgages in Greece
A persistent problem for Westerns when considering to buying property in Greece, is that they are faced with transferring estate mainly through cash, as this is the traditional way of property buying both in Greece and Eastern Europe.
However, in recent years Greek banks (as well as the established foreign banks in Greece) have started to offer mortgage loans or home loans to both domestic as well as foreign home buyers. In addition, you can also choose to securing a property abroad mortgage in your host country with High Street Banks (e.g. HSBC) as well as using these banks' services in Greece where your property purchase takes place.
We at Greek Homes are able to assist you in choosing the right bank for your mortgage requirements in Greece, and for starters, here we explain what you need to do for a successful home loan application.
Synopsis
Mortgage loans given by most Greek banks to EU citizens with the condition that the purchased property is in Greece are the following:
The basic supporting documents in order to receive housing loans are:
A. For the economic preliminary approval:
- Photocopy of identity document and/or copies of passport;
- Copy of last liquidation note 1;
- Recent certification of wages - if you are a salaried employee;
- Copy E32 of 2 last years – Required only if you are self employed.
B. For the realization of juridical - technical control of the property:3
- Title of ownership;
- Drawing of ground plan - copy of document issued by the Hellenic Urban Planning Authority;
- Building authorization - it is not required for apartments, except for the penthouses;
- Topographic diagram - copy of document issued by the Hellenic Urban Planning Authority, it is not required for apartments.
1. Certificate from the Hellenic Taxation Authority stating that one does not have any tax debts
2. Taxation document for self employed people, and businesses
3. In case of a mortgage underwriting
All documentation in part B will be prepared and supplied by Greek Homes to the mortgage applicant on request.
The amount of loan that can be received is the interrelation of the debtors’ income and of the value of the underwritten property. The duration of settlements usually depends on the selected mortgage program, the age and the economic possibilities of the included debtors.
Now, requesting financing should be done prior to your visit to Greece and before viewing the property you are about to purchase, as queries and applications for home loans may take several weeks to process – a very time consuming process can ensue and we recommend you to apply very early on.
Mortgage lenders and the lending system in Greece
We should note that the system for mortgage lending in Greece is not as proficient and as smooth as in many other Western countries, however, the industry is consolidating in line with other EU members home lending institutions and systems - bringing smoother application requests and better conditions in the coming years.
Here we present the most popular Greek mortgage lenders:
Exchange Rates
Also, if you plan to transfer funds from your host country please contact us as we cooperate with a reliable currency broker in the UK rendering you both best rates on f/x and as a result save you 1 - 3% on your transfer.
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Written by Eliseos Manoilidis © 2007 Greek Homes
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