Mortgage Terms and Interest Rates in Greece
If you plan to buy a home in Greece, you’ve probably done some planning on how to finance your new home. Depending on your home country, one common option might be a mortgage. In Greece, getting a mortgage as a non-resident is not an easy endeavour, but it’s good to be informed about how the process works.
We will present the general process of getting a mortgage in Greece, but the process of each bank may differ and may change from year to year. In general in Greece, mortgage rates vary from 3.0% to 6.5%, depending on the bank (as of Jan 2025), and mortgage terms will be slightly different based on the bank you visit.
You do not need to be a Greek resident to apply for a mortgage, but most Greek banks apply different, stricter rules for people living abroad. For some (not all) Greek banks, you will need be a Greek taxpayer, meaning you must have your tax residency in Greece in order to be eligible for a loan.
Requirements for a Mortgage in Greece
You must be under a certain age (usually 70-75) years old at the time your loan ends. This age limit will differ depending on the bank as well.
Your family’s income must be sufficient compared to the amount you want to borrow and the monthly amount.
You will also need a Greek tax number (AFM) and Greek bank account.
Documents Needed to Apply for a Mortgage in Greece
To get a mortgage in Greece, with most banks you will need:
- A copy of your ID or passport
- A Greek Tax Number
- A letter of employment or proof of income. This includes copies of paychecks for employees, or a proof of business for freelancers.
- Tax returns from the last years from the country where you filed taxes (usually going back 2-3 years, depending on the bank).
- A bill that shows your residential address
- Proof of a registered telephone number
The documents need to be translated and typically bear an Apostille stamp. Some banks will require additional documents, which will depend on your country of origin.
Do I Need to be a Greek Resident to Get a Mortgage in Greece?
No, you don’t need to be a Greek resident to apply for a mortgage.
Do I Need a Greek Bank Account to Get a Mortgage in Greece?
Yes, you will need a Greek bank account and AFM (tax number) to get a mortgage in Greece. Getting a tax number is necessary when buying a property in Greece, so it doesn’t need a separate process.
What is the Greek Real Estate Market Like?
Property values have been slowly and steadily increasing since 2020.
Today, a newly built villa in the southern part of Rethymnon in Crete, with a surface area of 80 sq. m., three bedrooms, two bathrooms, and a pool, is priced at 327,000 euros. A property with similar specifications in the same region was selling last year for 280,000 euros and was even lower in 2022, with a sale price of 265,000 euros.
The 2024 price represents an increase of 23.3% compared to 2022 and 16.7% compared to last year. This means you can make a profit just one year after investing in a home in Greece.
Predictions for the Future
Based on Elxis’ data, prices for holiday homes in Greece are expected to rise by an average annual rate of 8%-10% over the next few years.
“Many of our clients believe, rightfully so, that the current period is probably the final chance they’ll have to acquire a unique holiday home in Greece at a very competitive price point. This will allow them to not only secure a solid annual net yield of at least 4% from rental income but also profit from a future resale of the house in a few years,” Mr Gavriilidis (Elxis CEO) notes.
How Much Can I Borrow to Buy a Home in Greece?
Generally, for non-residents the maximum amount of the mortgage can’t be more than 50% of the taxation value of the property, depending on the bank. The amount of your mortgage is dependent on multiple factors.
First, the bank usually does a background check of your personal details – income, tax returns, financial history, and the value of your collateral on the loan, among other supporting documents.
Second, the bank does a “technical check” on documents related to the property, like title deeds, building permits, topographic maps, and more.
How Long Will it Take to Pay Back my Mortgage?
The total mortgage repayment period will depend on the length of time you choose to repay your loan. Usually, a longer term means a lower monthly payment, but the total interest is higher. In general, a shorter term has a higher monthly payment, but a lower total amount interest.
Interest Rates at Greek Banks
**The rates listed below are subject to change.
EuroBank
If you are not a Greek or Cypriot citizen, you may take out a mortgage loan for up to 50% of the value of the property:
- 3 years with fixed interest rate at 3.00%**
- 5 years with fixed interest rate at 3.60%**
- 7 years with fixed interest rate at 3.80%**
- 10 years with fixed interest rate at 4.30%**
- 15 years with fixed interest rate at 4.60%**
National Bank of Greece
Please note that you need to have your tax residency in Greece in order to apply for a loan at National Bank of Greece. If you are a Greek tax resident, the same rates apply as for locals.
You may take out a mortgage loan at a minimum of 10,000 Euros, for up to 55% of the property value:
- 3 years with fixed interest rate at 3.00%**
- 5 years with fixed interest rate at 3.50%**
- 10 years with fixed interest rate at 4.00%**
- 15 years with fixed interest rate at 4.30%**
- 20 years with fixed interest rate at 4.50%**
- 30 years with fixed interest rate at 4.60%**
Piraeus Bank
You may take out a mortgage loan at a minimum of 20,000 Euros for:
- 5 years with fixed interest rate at 2.95%**
- 30 years with fixed interest rate at 5.10%**
To find your exact interest rate, you will need to arrange a meeting with a specialist in a Pireaus Bank branch. You do not need to have your tax residency in Greece in order to apply for a loan at Piraeus Bank.
Alpha Bank
To receive a quote from AlphaBank, you will need to make an application online and enter the price of the house as well as some details like its energy class. Then you get pre-approval to speak with a representative to find out what rates you qualify for.
Financing Alternatives for Your Home in Greece
You have a few other options if you choose not to get a mortgage in Greece. For example, you can:
- Pay with available funds (the most common option)
- Remortgage your current property in your homeland to buy a property in Greece
- Get a mortgage loan abroad
Does Elxis Have Suggestions For Getting a Loan in Greece?
It can take up to 12 visits to the bank to complete a mortgage in Greece, without the proper guidance.
Language barriers, bureaucratic processes, and differences in local procedures can leave you saying “it’s all Greek to me.”
Enjoy a simple, hassle-free process to get a loan in Greece, both to purchase, repair, or build a property in Greece here.
Loan pre-approval can be obtained within a few days, if you have submitted all the documents required.
