Government and banks have delineated the framework for the protection of their home, and now this agreement goes to the creditors who will be asked for approval.
Everything indicates that the first step was done. The next will be delimited by creditors’ approval.
Let’s look at the 14 points:
1. According to the government, 90% of the borrowers are covered. The joint proposal will be forwarded to the supervisory institutions of the banking system, with the aim of completing the legislative process by the end of February.
2. The new framework to replace the Katselis law defines protection in dwellings that are mortgaged with an objective value of up to 250,000 euros instead of 280,000 of the Katseli law – and the rest of the loan will not exceed 130,000 euros.
3. All first homes, irrespective of the type of loan for which a mortgage was given, are included in the new data.
4. There are income criteria depending on the marital status. That is 12,500 euros for one person, 21,000 euros for the couple, 5,000 euros for each child.
5. There is a family income limit of 30,000 euros.
6. Those enrolled in the scheme will be able to protect their first home, with a 2% interest rate and a repayment term of up to 25 years.
7. The “haircut” will not be horizontal but will apply to the balance of the loan amount when the amount of the loan exceeds 120% of the value of the property.
8. An electronic platform will open.
9. The loan installment for vulnerable borrowers will be subsidized.
10. For the period 2019-2020, over € 450 million will be available. According to government sources, the new criteria and these amounts cover 90% of the borrowers.
11. Those who have applied for inclusion in the Katseli law but have not yet been heard will again apply to see if they meet the eligibility criteria. They will go through pre-trial checks.
12. There will be no home protection without pre-control.
13. Anyone who appeals and does not accept the settlement will have to pay 30% of the installment until his case is heard.
14. Anyone who does not pay three installments loses protection and his home is auctioned.
What is happening now?
Nowadays, the Katseli law, according to lawyer Olympia Nikolopoulou, covers the first home to 180,000 euros for an adult, 220,000 for a couple, 240,000 for one child, 260,000 for a family with two children and 280,000 for a family with three children. The annual family income of the debtor must be between EUR 13,906 and EUR 40,800. Where the State pays part of the installment, the protection exists for an objective value of between EUR 120,000 and EUR 220,000, increased depending on the marital status of the person concerned. That is, an adult: 120,000 euros, couple: 160,000 euros plus 20,000 euros per child. The annual income must be between 8,180 and 24,000 euros.
So you will get a housing allowance
1. It concerns more than 300,000 households.
2. It will be 450 million euro.
3. It concerns tenants and borrowers.
4. Starts the “rent allowance” first.
(a) The subsidy will be granted retroactively from 1 January 2019.
b) It will run from 70 to 210 euros per month.
c) It will be calculated according to the composition of the household.
d) For unmarried, the allowance will be 70 euros per month.
e) For each additional member there will be a 50% surcharge, an amount of € 35 per month.
f) For a single parent, the surcharge is 70 euros per month, as for unprotected children.
(g) The highest amount of subsidy is € 210 per month, regardless of family members.
How to get it
The process will have stages.
1. It will be given at the request of the beneficiary on an electronic platform.
2. Income and property criteria will apply.
3. Requirement that the rental contract be submitted to the Tax Office.
4. Everything will be cross-checked electronically via the Taxis system of the AAD.
5. The income criteria will range from 7,000 to 21,000 euros, depending on the household members.
6. Single people have an annual income of up to € 7,000, plus € 3,500 for each additional household member.
7. In single parent families there will be an increment of 7,000 euros for the first minor member.
8. For households with unprotected children, the total income will be up to € 21,000 per year, irrespective of its composition.
9. The value of real estate in the rent subsidy will be between 120,000 and 180,000 euros. That is, for a single-member household, the value of the real estate will not exceed 120,000 euros, plus 15,000 euros for each additional member of the household and up to 180,000 euros.
10. There is also the deposit criterion of up to 7,000 euros.