What to expect when applying for a mortgage in Greece from abroad
Greece is the place to go, with over 6000 beautiful islands, vast coastlines, pristine beaches and social-media-friendly buildings, the country is a paradise surrounded by the Aegean Sea. But getting a mortgage from abroad still remains a headache for the regular consumer not willing to spend countless hours on finding and comparing options. That is where Homevest comes into the picture. We can help you understand your mortgage options in Greece and accompany you throughout the property purchase journey in order to secure you a new dream home with mortgage financing, from the comfort of your home.
Mortgage requirements when buying a home in Greece from abroad
Greek nationals living abroad and buying a home back home can face preferential treatment from lenders, the terms can be summarized as:
- Loan-to-Value up to 75%, meaning that you need to have 25% of the property price saved up as a deposit towards the purchase.
- Length of repayment up to 25 years.
- Max debt-to-income ratio (monthly income - monthly debt payments) of 30%
- This requirement might differ between lenders and your specific affordability assessment.
Other foreigners, buying from both the EU and outside, might be offered more stringent terms, including:
- A lower loan-to-value, ranging between 60-70%, meaning that you have to contribute with 30-40% of the property purchase price from savings.
- The range mainly depends on a case-by-case assessment of affordability paired with country of residence and currency you earn your monthly income in.
- Mortgage repayment length of up to 15 years.
- Max debt-to-income ratio of 30%
Types of mortgages accessible for non-resident applicants in Greece
- Greek citizens living abroad can choose between 3, 5, 10, 15, 20 or 25 years with rates currently ranging between 3.10-4.5%
- Other foreign citizens are limited to 3, 5, 10 or 15 year long fixed mortgages with rates ranging between 3.1-4.2%
- Tied to Euribor 3-month reference rate
- Spreads, meaning the margin on top of the Euribor reference rate, currently range around 1.3-2%.
Mixed interest rates
- Combines the two above, but the fixed interest rate payments need to precede the variable ones.
- Choose any mix you like, starting with 3, 5, 10, 20 or 25 years of fixed payments followed by the variable rate payments detailed above.
- Non-Greek citizens are in this case as well limited by the 15-year-maximum repayment period.