The government’s My Home II program aims to help thousands of families realize their dream of homeownership. However, according to official data, only 2,600 households have completed the acquisition of their first home through this program, with total funding reaching 280 million euros.
Statistical data reveals that the average disbursement amount per loan is calculated at 112,000 euros. Despite these significant amounts and the program showing substantial work, after approximately nine months of operation, disbursements represent only 14% of the total 2 billion euro budget.
Additional 7,000 loans in final stage
The most recent data records approximately 7,000 additional loans that have received final approval, beyond the 2,600 completed contracts. In these cases, beneficiaries have been selected, properties have been identified, and all required legal and technical checks have been completed. Now mainly administrative procedures remain for final disbursement, without excluding potential last-minute problems.
Combining the 9,600 loans (2,600 disbursed and 7,000 in final phase), total funding amounts to approximately 1.2 billion euros, corresponding to 60% of the planned budget.
Challenges for program completion
Loan pre-approvals have reached 31,000 for total funding close to 3.7 billion euros. However, approximately 21,000 pre-approved loans have not yet been matched with suitable properties. It should be noted that each household can submit multiple applications, as each approval is valid for three months.
Lending contracts must be completed by the end of next June. Consequently, the next nine months will be critical for implementing the remaining approximately 7,000 loans.
Property market distortions
The distortions that have emerged in the housing market, particularly in properties eligible for the program, constitute a significant obstacle. Prices of suitable homes have increased disproportionately, creating a gap between the selling price and bank valuation. This results in banks covering a smaller percentage of the purchase than the borrower initially expected.
Additionally, cases are recorded of individuals resorting to new borrowing through high-interest consumer loans to cover housing purchase costs. Meanwhile, the need for additional loans for renovating the newly acquired property is almost certain.
The “Upgrade My Home” program
The complementary “Upgrade My Home” program for interest-free loans up to 25,000 euros is not progressing at the expected pace. Money disbursement is carried out based on work receipts, which increases their cost.
To date, 2,908 loans from this program have been approved, with an average volume of 18,000 euros. Disbursements reach approximately 52 million euros from a total budget of 400 million euros, representing 25%.
Preparing for My Home III
From the government’s perspective, My Home II is not considered a failure. Despite the distortions it has caused in the market, the government maintains that as long as loans find beneficiaries, the program fulfills its purpose.
For this reason, the third version of My Home is being prepared, likely to be announced at the Thessaloniki International Fair. The new program is expected to have a budget of 1 billion euros (like My Home I) and primarily target families with children, while there will likely be further expansion of income limits.
