The dream of owning a home under the Greek sun—with views of the azure sea or nestled in an olive grove—is more attainable than many foreigners realize. Although the process of financing a property in Greece has its specifics, obtaining a mortgage as a foreign citizen is a completely realistic goal. The key to success lies in detailed preparation and understanding the requirements of local banks. In this guide, we will delve into everything you need to know before applying for a mortgage for foreigners in Greece.
Contents
Main Conditions and Bank Requirements
The first step to securing financing is to familiarize yourself with the main parameters that Greek banks apply to foreign borrowers, especially those from the European Union. The good news is that for EU citizens, the conditions are significantly more lenient.
Down Payment (Loan-to-Value – LTV)
This is one of the most crucial factors. Greek banks are relatively conservative and rarely finance 100% of the property’s value.
- Standard Ratio: Most banks finance between 60% and 70% of the lower of the two values: the sales price or the bank’s market appraisal of the property.
- What this means for you: You must have your own funds (down payment) of 30% to 40% of the property’s value. It is advisable to also budget an additional 10-15% to cover associated costs like taxes, notary, and legal fees.
Income and Creditworthiness Requirements
Greek banks will conduct a thorough review of your financial standing to ensure you can service the loan without issues.
- Provable Income: You must provide official documents for stable and regular income from your country of residence. This includes an employment contract, tax returns for the last 2-3 years, and bank statements.
- Debt-to-Income (DTI) Ratio: This is a critical metric. The total sum of your monthly liabilities (including the installment for the new mortgage) should not exceed 30-35% of your net monthly income.
- Credit History: Your credit history in your home country will be checked. A clean credit record is a mandatory requirement.
Interest Rates and Loan Terms
Interest rate conditions in Greece are competitive within the Eurozone, directly influenced by the key interest rates of the European Central Bank. Investors can choose between two main types of rates.
Types of Interest Rates
- Fixed Rates: These offer security, as your installment remains unchanged for a specific period (e.g., 3, 5, 10, or 15 years). As of mid-2025, fixed rates for foreigners often range between 3.5% and 4.5%.
- Floating Rates: These are typically tied to the 3-month Euribor plus a fixed margin from the bank (e.g., Euribor + 2.0%). They carry more risk if interest levels rise but can be more advantageous during periods of decline.
Repayment Term
For foreign citizens, the maximum loan term is usually shorter compared to local residents. Most banks offer a repayment term of up to 15-20 years. An important condition is that the borrower’s age must not exceed 75 at the end of the loan term.
Required Documents: Prepare in Advance
Preparing the documents is perhaps the most labor-intensive part of the process. Good organization will save you a lot of time and hassle. All documents must be officially translated into Greek and apostilled.
List of Essential Documents:
- Personal IDs: A copy of a valid national ID card or passport.
- Greek Tax Identification Number (ΑΦΜ – AFM): This is mandatory. It is issued by the local tax office (Eforia) and is required for any major transaction in the country, including opening a bank account and buying property.
- Proof of Income:
- Last 3-6 payslips.
- Employment contract.
- Tax returns for the last 2-3 years.
- Bank Statements: For the last 6-12 months, showing account activity and available savings.
- Proof of Address: A recent utility bill (electricity, water, internet).
- Credit History Report: A statement from your home country’s central credit registry.
- Preliminary Property Purchase Agreement.
The Process Step-by-Step
- Initial Consultation: Contact several banks to get preliminary offers.
- Obtain AFM and Open a Bank Account: These are the first practical steps you need to take in Greece.
- Submit Documents: File the complete set of translated and legalized documents with your chosen bank.
- Property Appraisal: The bank appoints a certified appraiser to determine the market value of the property. The appraisal costs are borne by the buyer.
- Approval: After analyzing the documents and the appraisal, the bank issues a final approval (or rejection).
- Signing the Contracts: You sign the loan agreement and the final notarial deed for the property purchase.
While it may seem complex, the process of obtaining a mortgage for foreigners in Greece is entirely manageable with the right information and preparation. If you are planning such a step, don’t miss our complete step-by-step guide to buying property in Greece, as well as our analysis of real offers for properties by the sea.
For additional information on monetary policy and interest rates in the Eurozone, you can refer to the official website of the European Central Bank.
This post is also available in: Български
