According to the Ministry of Finance, the interest rate subsidy cannot exceed 2%. Borrowers can refer to the designated contact points for further information.
Following today’s decision by the Council of Ministers, the Ministry of Finance officially announced the launch of the Mortgage Interest Subsidy Scheme with Income Criteria.
Purpose of the scheme
The scheme aims to provide financial support to households with mortgages for primary residence purposes, in the form of an interest rate subsidy. The ultimate goal is to mitigate the negative effects of inflation and rising interest rates on disposable income.
Eligibility criteria
Eligible individuals are those who:
- Signed a loan agreement between 1 January 2022 and 31 December 2023, with a loan account opened based on this agreement.
- Have serviced mortgages with variable interest rates (regardless of the base interest rate) not taken for refinancing/restructuring previous loans.
- Have a mortgage amount not exceeding €400,000.
- Have an Annual Family Income of up to €50,000.
- Have settled or arranged their tax obligations with the Tax Department for up to the tax year 2023.
Subsidy details
The scheme subsidises 50% of the average increase in the interest rate experienced by the borrower compared to the rate at the time the loan agreement was signed. This applies for two years from the loan’s first disbursement date. The subsidy cannot exceed 2%.
Implementation and application process
The scheme is implemented by the Republic’s General Accounting Office, where the public can direct inquiries:
- Phone: +357 22602365, +357 22602381, +357 22602317
- Email: [email protected]
The detailed terms of the scheme, the application form, the guide for completing it, and answers to frequently asked questions will be posted on the General Accounting Office’s website.
Applications, along with supporting documents, must be submitted in printed form at Citizen Service Centres (KEP) and Citizen Support Offices (KEPO) from 2 January 2025 to 28 February 2025.
Also read: Beneficiaries of the approved housing loan interest subsidy scheme
Source: Economy today
