When you buy a new property in Greece
, know that it's bound to be expensive. Greece is a developed country, after all, and boasts one of the largest economies in the world. Even the rich and famous have homes here too! So it makes sense that purchasing any sort of property here will cost a pretty penny. But don't let that stop you, though! Luckily, you can still get a mortgage in Greece. You will need to do a lot to get it, sure, but know that the rewards are far beyond what you might expect!
The Required Documents
As with any other process, getting a mortgage in Greece requires you to show a few documents. They include proof of identification, your Greek Tax number, proof of income, proof of address, and any contact number. For the proof of identification, your valid passport is more than enough. For your proof of income, you can give out your employment contract, company ID, or your last 3 payslips. Now, for your proof of address, your lease contract or utility bills would suffice. And for your contact number, your number from your local SIM card
Important Conditions for Greek Mortgage
Getting a mortgage in Greece is pretty unique since many financial institutions here have set two very important conditions. The first is that you have to at least be older than 25 years old. And the second is that you have to repay your mortgage in full by the time you reach the age of 58. Also, though not necessarily required, you'll have an easier time getting a mortgage if you opened a local bank account
. In fact, this also lets you go for another financial aid option for when you're buying real estate in Greece: taking out a housing loan.
How Much Can You Ask For Your Mortgage Loan?
Here in Greece, the minimum amount you can ask for your mortgage loan is €10,000.00. And since the common deposit here is around 10%, this might be enough for just that. Meanwhile, the maximum amount for your mortgage loan in Greece will depend on your income. If you found a job that gives a high salary, you're more than likely to get a bigger mortgage loan. Do note, however, that the maximum amount will likely never go beyond 80% of the property value.
The Mortgage Rates and Terms in Greece
Now, let's talk about mortgage rates in Greece. As with the amount of your mortgage loan, the mortgage rates here also vary. The minimum is 3.5% while the maximum is 7.5%. Your mortgage rate will depend on your financial standing. If you earn a high income, it's more than likely that the financial institution will impose a higher mortgage rate. Especially since the mortgage terms in Greece only range from 6 to 35 years. Within any of these timeframes, you have to be able to pay the mortgage loan back in full!
If you can't pay for a new property in Greece upfront, your best bet is to take out a mortgage loan! Don't worry! The process of getting one isn't all that complicated. As long as you remember the important things, you're good to go!