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, a fixed interest rate deal is around 4.6%.
The latest rates from Eurobank can be found here:
Can you provide examples of a typical such mortgage deal?
The rate can be floating, fixed or mixed rate (combination of both). A typical loan of €65,000 (65% LTV) on a €100,000 property with 15-year term and fixed rate comes with a monthly instalment of around €500.
A mortgage of €195,000 (65% LTV) on a €300,000 property (with 15-year term and fixed rate) would cost €1,500 per month.
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). Another €300 is charged for lawyer fees (the application procedure can be managed from customer’s solicitor end to end).
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 six 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, Serbia, Bulgaria and UK (London).