Greece’s “My Home II” subsidized mortgage program has ended with more than half its approved beneficiaries unable to find eligible properties to buy, exposing a deepening supply crisis in the country’s housing market.
Of roughly 38,000 applicants who received bank pre-approval for financing, only 17,000 managed to complete or are near completing a home purchase. The remaining 21,000 – more than 55% of those approved – could not find properties meeting the program’s age and valuation requirements.
The Finance Ministry has extended the deadline to August 31 to allow approximately 6,000 borrowers who have identified eligible properties and obtained loan approval to finalize their purchase contracts.
Those loans will be funded through the Hellenic Development Bank. Total program commitments now stand at €1.8 billion of the €2 billion available, with roughly €1.2 billion already disbursed to more than 11,000 beneficiaries.
The program offered a 50% interest rate subsidy for the loan’s full duration, bringing average rates to approximately 2.3%, half the rate of a standard variable mortgage.
