The Public Employment Service (DYPA), implementing the first phase of the “My Home” program with low-interest loans for young people to buy a home, is launching the Government’s new housing policy.
The start of applications for the new first home program for young people from today Monday, 04/03/2023, marks the restart of the housing policy in our country, “after more than 10 years of a complete lack of new actions in this critical sector” he says speaking to APE the commander of DYPA, Spyros Protopsaltis. It should be noted that this policy was stopped in 2013 with the abolition of the former Organization of Worker’s Housing (ÖK).
As he points out, “as the universal successor of OEK, DYPA (former OAED) took over all its pending and obligations and proceeded to complete long-suffering projects, which were delayed for many years, suffering the citizens, who were waiting to acquire housing, but had not implemented no new action or any new program.”
According to Mr. Protopsaltis, this changed last year, as the “Jobs Again” and “My Home” laws instituted cuts and changes that strengthened the pivotal and multifaceted role of DYPA, which now assumes a leading role in planning and implementation of those foreseen with the restart of the government’s new housing policy.
With these interventions, DYPA acquired the competence of the housing policy, but also new tools, among which the required flexibility for the management and utilization of its relative reserve (over 1.5 billion euros) and real estate her.
At the same time, it now has the possibility of partnerships with public and private entities for the construction of properties, with the aim of housing protection for the workforce and young people, while the introduction of relevant regulations for the properties it owns, allow for their better exploitation and an increase in income her.
“A modern framework is now being created that gives new possibilities to DYPA for the implementation of programs that will cover housing needs, implementing what is foreseen in the government’s housing policy, avoiding wastes and delays of the past and implementing innovative and targeted practices and policies, based on of European experience” notes Mr. Protopsaltis.
The “My Home” program
The first action, therefore, is the “Spiti mou” program, which aims to grant loans to young people and young couples, in order to acquire their own home, and the applications to the participating banks begin, within the schedule, which had be announced.
As mentioned by the Minister of Labor and Social Affairs, Kostis Hatzidakis and the Minister of State, Akis Skertsos, the loans – low-interest and interest-free housing loans – for the purchase of a first home have age, income and property criteria, which apply cumulatively and are aimed at young people from 25 years to 39 years old, (on the date of submitting the application for the loan) and in couples (including those connected by a cohabitation agreement), as long as one of the two is 25-39 years old, on the date of submitting the application for the granting of a loan.
The minimum income limit is set at 10,000 euros, while a higher limit is set for the granting of the heating allowance, that is, for this year 16,000 euros for single people, 24,000 euros for married people, which is increased by 3,000 euros for each child. In addition, for single-parent families, the limit is 27,000 euros, with an additional 3,000 euros for each child beyond the first.
To have no other property
A necessary condition is that the young people do not have another property that covers their housing needs. Properties suitable for residence are those, in the case of unmarried and childless beneficiaries, with a size of more than 50 sq.m., while, for the rest, the size increases by 10 sq.m. per family member. Also, a property is considered suitable where there is a co-ownership rate of more than 50% and, also, they have either full ownership or usufruct. In addition, the property that is located in the same regional unit as the place of work or profession is suitable (outside the Attica Region, where it is considered suitable, if it is located within it, while the exception is the islands, where the property must be located within the island , except for Crete).
The maximum amount of the loan is 150,000 euros. The commercial value (contract value) of the properties cannot exceed 200,000 euros and the size 150 sq.m., while their age must be at least 15 years old, which will be obtained from their construction permit, and they must be located within a residential area.
The participation of the borrowers will only constitute 10% of the value of the property. Therefore, the loan cannot cover an amount exceeding 90% of the value of the property.
The repayment period is 30 years
The maximum repayment period is 30 years, while the purchase of the property cannot be made by a relative of the borrower, first or second degree, or by a person connected by a cohabitation agreement with the buyer.
The financing amount, through DYPA (75%), will be interest-free, while the rest (25%), through banks, will be interest-bearing (with a fixed or variable interest rate). Therefore, the interest will be around 1/4 of a non-co-financed “normal” mortgage.
In cases of young couples who have three or more children, on the date of submitting a financing application, or young couples who, during the repayment of the loan (up to 30 years), become three or many children, the interest rate will be zero for the entire loan.
The total budget for granting loans is 500 million euros. The resources come from DYPA, which pays the amount of 375,000,000 euros to finance 75% of the capital of the loans and an amount of 125,000,000 euros from the banks to finance 25% of the capital of the loan.
In addition, there is provision for an additional amount from DYPA to cover subsidized interest and management fees.
“Taking advantage of the new responsibilities and new tools added to its arsenal by the “Work Again” and “My Home” laws, DYPA implements initiatives to support the country’s young men and women in practice, giving them the opportunity to start a new period of their life, to get their own house, become independent and start a family. DYPA is firmly by the side of young men and women, supporting their next steps for their professional and personal development with all the means at their disposal” emphasizes Mr. Protopsaltis.
Those interested can contact for more information either the Single Citizen Service Number 1555 or visit the DYPA website www.dypa.gov.gr.
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**Interview with Spyros Protopsaltis, Commander of DYPA**
*Host:* Good afternoon, Spyros. Thank you for joining us to discuss the “My Home” program and the new housing policy for young people in Greece.
*Spyros Protopsaltis:* Good afternoon! Thank you for having me.
*Host:* Let’s dive right in. Can you tell us what the main goals of the “My Home” program are?
*Spyros Protopsaltis:* Certainly! The “My Home” program aims to provide low-interest loans to young people and young couples to help them purchase their first home. This initiative is a crucial part of the government’s efforts to restart housing policy in Greece after a long hiatus. We want to make homeownership accessible for the younger generation, especially considering the economic challenges they face.
*Host:* You mentioned that the housing policy was stagnant for over a decade. What led to the revival of these programs now?
*Spyros Protopsaltis:* The previous organization, the Worker’s Housing Organization (OEK), had its functions halted in 2013, which left many potential homeowners in limbo. Last year, however, legislative changes under the “Jobs Again” and “My Home” laws have empowered DYPA to take a proactive role in housing services. We are now equipped with the necessary tools and resources to implement innovative solutions that respond to current housing needs.
*Host:* What criteria will young applicants need to meet to qualify for these loans?
*Spyros Protopsaltis:* Applicants must be aged between 25 to 39 years, and we have set income limits and property ownership restrictions to ensure the program reaches those who truly need it. For instance, an individual’s annual income must be at least €10,000, while couples have higher thresholds based on family size. Importantly, applicants must not already own a property that meets their housing needs.
*Host:* Can you elaborate on the financial aspects of the loans?
*Spyros Protopsaltis:* Absolutely. The maximum loan amount is €150,000, covering 90% of the property’s value, which cannot exceed €200,000. The repayment period is set at 30 years, which allows young borrowers to manage their finances more effectively. We aim to minimize upfront costs by requiring only a 10% contribution from the borrower.
*Host:* This sounds promising for many young people. How do you foresee this program impacting the housing market and the overall economy?
*Spyros Protopsaltis:* We believe that by making housing more accessible, we can stimulate not only the housing market but the economy as a whole. When young families can secure stable homes, they contribute to their communities and economies through spending, investing, and planning for the future. Additionally, our approach will avoid the pitfalls of the past, using lessons from European practices to ensure efficiency and sustainability.
*Host:* Thank you for your insights, Spyros. It seems like the “My Home” program could be a game-changer for young people in Greece.
*Spyros Protopsaltis:* Thank you for having me. We are very hopeful about the positive change this program will bring to our society.
