The interest rate subsidy plan is being quantified and extended by the government, giving a helping hand to those who want to get a mortgage and business loan and on the other hand provides a good opportunity for banks to channel part of their excess liquidity.
With yesterday's announcement by Finance Minister Konstantinos Petridis, the plans are extended until the end of the year, instead of until the end of June, as originally announced. The mortgage subsidy was something that the banks saw very positively, as the demand was high from young people, mainly couples or individuals. On the other hand, there is the possibility of mobility in the real estate market by Cypriot buyers and to give indirect support to land development entrepreneurs and the construction industry in general.
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Those interested in buying a home should know the following:
– For mortgages, the maximum amount increases to € 400,000 from € 300,000 that was, with immediate effect from 17/02/2021. That is, the total amount of the maximum grant now amounts to € 24,000. The duration of the interest rate subsidy is 4 years, from the date of the 1st disbursement of the loan and the amount of the interest rate subsidy up to 1.5 percentage points. Those who have applied, approved and / or borrowed for a loan amount of up to € 300,000 can apply for an additional loan amount, but the total loan amount does not exceed € 400,000, provided that all other provisions of the plan are met.
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