| For the majority of people looking for a holiday | | | | until recently house owners, has also made banks |
| home abroad, a housing loan or mortgage that will | | | | around the world more careful with their housing |
| provide them with 100% of the house value | | | | loan options. Even in Greece articles in various |
| seems like a gift rather than an option. We are at | | | | newspapers such as "Kathimerini" or "Proto |
| a time where people receive offers of this kind | | | | Thema" highlighted on Sunday 3rd of February |
| via e mail. | | | | 2008 the fact that Greek banks are going to |
| However, it is a well known fact that the higher | | | | increase the cost of mortgages and reduce the |
| the mortgage you are looking for, the higher its | | | | percentage they offer to cover. This implies that, |
| cost is to you. Naturally, there are always positive | | | | 90% or 100% funding will soon seize to exist as |
| options on offer in countries like Greece, one of | | | | an option while housing interest rates may soon |
| the countries with a highly attractive real estate | | | | rise. |
| market. In this article we will examine Greece | | | | As expected, Greek banks want to reduce their |
| more carefully. | | | | risk in this way but at the same time they |
| Within 2007 the interest rates on offer started | | | | protect the interested purchaser. Despite the fact |
| from as low as 2,95%. Naturally, this was the | | | | that protecting the consumer is not any banks' |
| base interest rate, not including house, life | | | | top priority this helps us to answer the initial |
| insurance or the legally required state contribution. | | | | question put in the title of this article. Acquiring a |
| A realistic expectation of an interest rate including | | | | housing loan will always be an option, but as a |
| these additions is between an average of 4% and | | | | holiday, permanent or investment home seeker |
| 5%. | | | | you may always keep in mind that there are two |
| Fixed interest rates on offer start from 1 year | | | | ways of reducing your risk: |
| and can reach even more than 20 years | | | | 1. Available funds enable you to acquire a smaller |
| depending on the bank. Naturally opting for a fixed | | | | mortgage amount and thus pay less interest. |
| interest rate for more than 3 years usually | | | | Always set a realistic amount as your available |
| guarantees that the interest rate will exceed 5%. | | | | budget without over stretching your self. At the |
| There is not really a minimum mortgage amount | | | | same time it would be recommended that a |
| (i.e. some banks mention 3.000,00 euro as a | | | | minimum 15% deposit is secured before you |
| starting point) while it is possible to obtain up to | | | | commence your research in order to buy a home |
| 90% or even 100% mortgage of the property | | | | overseas. |
| value in some cases. | | | | 2. Select a country and most importantly a |
| The repayment period for mortgages is up to 40 | | | | location with a combination of what you are |
| years, again depending on the bank, while one can | | | | looking for and relatively low mortgage rates. |
| repay it up to the age of 75. There are also | | | | Greece is the example that has been given so far |
| financial institutions which offer the option of | | | | and Crete could be a suggested location. A |
| paying only the interest for the first two years of | | | | location is vital for the long term property value |
| the mortgage. The installments of the housing loan | | | | and in the island of Crete the real estate market |
| are always paid after the money is released to | | | | has a relatively modest raise of 10% to 15% per |
| the applicant. As in most countries, the banks | | | | year which makes it stand out when compared |
| based in Greece usually request for proof of | | | | with the rest of Greece as a safe investment |
| income from the applicants which is usually | | | | destination. |
| supplied through their tax declaration documents. | | | | Taking these small steps may protect you while |
| The question remains: Should someone go for a | | | | purchasing a property overseas and help you to |
| 100% mortgage? First of all, the recent sub prime | | | | turn this process into a more enjoyable and safe |
| crisis in the United States of America (USA) apart | | | | experience. |
| from creating hundreds of thousands homeless | | | | |