Mortgage Loans in Greece: Why Greece Is Now One of the Most Affordable Eurozone Countries

Greece Enters the Eurozone’s Top Five for Mortgage Affordability

In November 2025, the average interest rate for mortgage loans in Greece with a fixed term of up to five years decreased to 3.04%, well below the Eurozone average of 3.35%. This places Greece fifth overall, ahead of many traditionally “cheaper” lending markets. Only Malta, Portugal, Croatia and Cyprus recorded lower rates, while countries such as Germany, Belgium, the Netherlands and the Baltic states reported significantly higher borrowing costs. 


What makes this especially notable is Greece’s rapid improvement. At the beginning of 2025, the country ranked ninth, with average mortgage rates of around 3.44%. In just one year, borrowing costs declined steadily, pushing Greece into the top tier of Eurozone mortgage markets.

A Strong Recovery After Years of Financial Pressure

This shift did not happen overnight. Greek mortgage rates peaked at 4.04% in October 2023, following the European Central Bank’s last interest rate increase. Since then, a consistent downward trend has taken hold, resulting in a full percentage point reduction. At the same time, Greece has reached another important milestone: positive mortgage credit growth for the first time since 2010. According to the Bank of Greece, mortgage lending increased by 0.4% year-on-year in November 2025. 


For over a decade, the housing market was shaped by negative credit expansion due to the financial crisis. The return to positive lending growth reflects renewed confidence from banks and borrowers alike — a crucial signal for long-term market stability.

What Does This Mean for Foreign Buyers

For international buyers, mortgage loans in Greece are becoming increasingly relevant as part of a broader property strategy. 


Lower interest rates mean:

– more affordable monthly repayments

– improved purchasing power

– easier access to financing for eligible foreign buyers 


Combined with comparatively lower property prices than many Western European markets, Greece offers a compelling value proposition — especially for buyers from countries with higher domestic mortgage rates. In addition, Greece’s real estate market benefits from strong fundamentals, including sustained tourism demand, growing interest in second homes, and lifestyle-driven relocation trends.

Comparing Greece to the Rest of the Eurozone

While Greece’s 3.04% rate places it firmly among the most affordable markets, the contrast with other Eurozone countries is striking. Latvia and Estonia recorded mortgage rates above 8%, while even major economies like Germany, Belgium and the Netherlands exceeded Greece by a noticeable margin. 


Countries such as France, Spain and Italy clustered around the Eurozone average, reinforcing Greece’s competitive position for buyers seeking both lifestyle and financing advantages. The five Eurozone countries with the lowest mortgage rates in November were: 


1. Malta – 1.79%

2. Portugal – 2.73%

3. Croatia – 2.75%

4. Cyprus – 2.85%

5. Greece – 3.04%

What to Expect Going Forward

The combination of falling interest rates and renewed credit growth suggests that mortgage loans in Greece are entering a period of normalization and stability. While lending criteria remain prudent, the overall direction points toward a healthier and more accessible housing finance environment. For foreign buyers, this creates an opportunity window — particularly for those planning medium to long-term ownership in Greece. 


Greece’s emergence as one of the lowest-cost Eurozone countries for mortgage loans marks a significant turning point for its property market. Lower borrowing costs, improving credit conditions and sustained international demand are reshaping the landscape for both domestic and foreign buyers. 


As always, individual financing conditions depend on personal circumstances, but the broader trend is clear: mortgage loans in Greece are more attractive today than they have been in years. In our detailed analysis, you can see how to get a mortgage in Greece.