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One of the aspects concerning most buyers is how they will obtain finance for their property. In Greece mortgages or housing loans are accessible to all, nationals and non nationals. Within 2007 the interest rates on offer started from as low as 2,95%. Naturally this is the base interest, not including house and life insurance or the legally required state contribution. A realistic expectation of an interest rate including these additions may vary between an average of 4% and 5%. However within 2008 the interest rates increased and the starting point of the base interest rate is usually 3,5%.
Fixed interest rates on offer start from 1 year and can reach even more than 20 years depending on the financial institution. Naturally opting for a fixed interest rate for more than 3 years usually guarantees that the interest rate will exceed 6%.
There is not really a minimum mortgage amount (i.e. some banks mention 3.000,00 euro as starting point) while in 2007 it was possible to obtain up to 90% or even 100% mortgage of the property value in some cases. However in the first half of 2008 this practice changed and banks now offer funding between 60% and 75%. So despite the fact that it is regular practice for the purchaser to pay a deposit of 10% when reserving a property it is recommended that a much higher percentage is available from own funds within a period of 3 months.
The repayment period for mortgages is up to 40 years, again depending on the bank, while one can repay it up to the age of 75. There are also financial institutions which offer the option of paying only the interest for the first two years of the mortgage. The installments of the housing loan are paid after the money is released to the applicant.
Banks usually request for proof of income from the applicant which is usually supplied by their tax declaration documents. The cost and the process of a mortgage application can be looked after by the attorney of the applicant.
Concluding, access to finance is available to all and when you choose Talos Properties for the search of your property we can offer you further advise on this matter.