Greek mortgages are now available for overseas buyers
Despite Greece’s popularity and a second home and retirement destination, it’s been impossible for people living outside Greece to get a mortgage. Yet Greece’s improving economy and investment incentives – such as the golden visa – has mean that it’s now much more attractive to international buyers.
Banks in Greece did not focus on this market with specific financing tools and procedures, but this has changed and Eurobank Group is amongst the Greek banks that has started providing mortgages to non-residents. Its International Customers Division provides the basics.
How much can you borrow?
Individuals from abroad can get a mortgage starting from €10,000.
What is the maximum Loan to Value (LTV)?
For foreign non-residents it is 65%, for Greek and Cypriot non-residents is 70%.
What is the maximum term of the mortgage?
The term of the mortgage is determined based on the monthly payments of the mortgage plan (fixed, floating or mixed) he selects. The Maximum term for foreign non-residents is 15 years and for Greek or Cypriot non-residents up to 30 years.
What are typical interest rates being charged?
At the time of writing (April 2024), a fixed interest rate deal for 10 years is around 4.10%. The latest rates from Eurobank can be found here:
Can you provide examples of a typical such mortgage deal?
For a loan amount of €100,000 (total amount of credit), at a nominal annual floating rate of 4.10%, which was agreed to be repaid in 360 monthly instalments, and for a security (by way of registering a prenotation of mortgage) amounting to €120,000, the total cost of the credit shall be €85,221, that is, for interest, the amount of €76,467, for the cost to evaluate the property to be secured (expense of legal/technical check) €750, for fire and earthquake insurance, €8,004; therefore the total amount to bepaid by the borrower for the repayment of the loan (total repayment amount) shall be €185,221, and the Annual Percentage Rate of Charge (APRC), according to the Law, shall be 4.77%.
Any limits on the types of property?
Mortgages are provided in order to buy, build or renovate a residential property in Greece.
What are the set-up fees for a mortgage?
Standard fees collected by the bank are €750 for property legal and technical due diligence, €250 of which, are paid in advance after customer agrees with financial pre-approval. Additional fees are paid for public services of the local cadastral office of around 0.875% of the amount of the prenotation (loan), as well as the land registry office (0.775%). Another €300 is charged for lawyer fees (the application procedure can be managed from customer’s solicitor end to end). Additional expenses may apply for cadastral surveys, prenotation registration and also depending on the purpose of the loan (purchase or development/renovation). Please refer to the mortgage loans general information for updated terms.
What is the early repayment policy on such a mortgage?
There is the option of early repayment — partial or full— with a quick and simple procedure. You can arrange a deal with no penalty during the floating rate period.
What documents are needed for approval of a loan?
Via e-mail you can send a copy of your passport and two previous financial years tax assessments or bank statements (not everyone in the UK has a tax assessment – unless they file a tax return).
Annual property insurance on the property for the event of fire or earthquake is mandatory. In addition, life insurance of the borrower and insurance on the content of the property can also be provided if customer wishes.
The Eurobank Group, consisting of Eurobank SA and its subsidiaries, operates in five countries. The Group develops financial products and services, focusing on customers and their needs. It offers extensive services to individuals and businesses. The Eurobank Group operates with transparency, builds credibility and applies modern corporate governance practices. It has offices in Greece, Cyprus, Luxembourg, , Bulgaria and UK (London).