Getting a Greek mortgage
While it is not common for buyers to purchase a property with a mortgage, it is still possible. Here are the steps that you would need to take to obtain a Greek mortgage as a non-resident.
Mortgages are not popular with property buyers, whether they are Greek or international buyers. Indeed, 75% of properties in Greece are bought in cash.
Mortgage rates available in Greece
Your income, creditworthiness and the value of the property all contribute to determining the amount you can get for your mortgage loan. If you are an international buyer, then you can get up to 65% of the commercial value of the property. Greek and Cypriot citizens can get up to 70% of the property’s commercial value.
However, if you are repairing, building or renovating a property, you may be able to get a bigger mortgage. As a non-resident, you can get a loan rate of up to 15 years. It’s worth bearing in mind that the youngest party should not be older than 75.
The minimum loan rate is comparatively low in Greece, starting from €10,000. A floating rate will match fluctuations in market interest rates, you can get this for the entirety of your mortgage loan.
You can get a mix of both fixed and floating rates, so long as the fixed rate period proceeds that of the floating period.
Criteria for a Greek mortgage
To apply for a Greek mortgage, you will need to be at least 25 and pay off the mortgage by 58. Plus, you will need to open a Greek bank account and obtain a Greek tax number (AMF).
Other requirements include:
- Past two years’ income tax declaration
- Past year’s bank statements
- Past six months’ proof of income
- List of mortgage loans already held
- Statement of your assets and liabilities, confirmed by an accountant
- Copy of your passport
The process of getting a Greek mortgage
- Find a reputable Greek mortgage broker with experience in assisting foreign buyers.
- Prepare and gather all the necessary information. Your broker will advise.
- Get mortgage pre-approval and form an idea of how much you can borrow.
- Search for your dream home.
- Commission a property valuation: the bank will need to know the value of the property before finalising.
- Finalise the mortgage application.
How to secure a Greek mortgage broker
Some banks, such as Eurobank, Piraeus Bank, and Alpha Bank will offer mortgages to international buyers. To ensure a smooth process, it is best to reach out to a Greek mortgage broker experienced at securing loans for overseas buyers. Individual Mortgage Solutions are the largest mortgage operators in Greece, with a specialism in assisting residents abroad.
It is advisable to reach out to a Greek mortgage broker early on in the buying process. You do not want to head out to Greece, discover your dream property and only then realise that you would need a mortgage to buy. A Greek mortgage broker would use your budget and financial profile to find the best rates and bank for you.
To avoid being misled, check the credentials of the mortgage broker that you have chosen. A good reference is always useful too.
Alternatives to a Greek mortgage
If you are from the UK and have a defined pension pot, then you have the option to withdraw 25% of it tax-free and leave the rest. You could use this towards your Greek property.
UK homeowners over the age of 55 might opt for a lifetime mortgage. Without selling your home, you can release cash tax-free from your property. The money does not need to be repaid until you have died or moved to long-term care. This tax-free lump sum can be useful when buying abroad.