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‘Estia’ housing scheme is launched

September 2, 2019 at 9:46am
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The ‘Estia’ special government scheme drawn up by the Ministry of Finance in a bid to boost borrowers’ ability to repay their loans was launched today, September 2.

The state which subsidises part of the repayment instalments of the restructured loan will contribute to the Fund’s initial capital with €20 million, according to Finance Minister Harris Georgiades.

Georgiades also said that the Ministry of Labour is now ready to receive applications by those interested to take part. And that the deadline is November 15.

Based on information from the banks, the government expects about 15,000 applications to be submitted. But eligible applicants will likely not number more than 10,000.

The stated purpose of Estia is to assist, support and protect vulnerable households who have mortgaged their primary residences houses for their loans and at the same time reduce the high number of bad debts.

It applies to loans (mortgages) that were deemed non-performing on September 30, 2017. Loans designated as non-performing after that date are not eligible. The primary residence which is mortgaged must have a maximum market value of up to €350,000.

The Estia scheme applies to the first mortgage on a residence, and covers loans or credit facilities regardless of currency.

Total household income of the applicant must not exceed the following: €60,000 for a family with at least four dependents; €55,000 for a family with three dependents; €50,000 for a family with two dependents; €45,000 with one dependent; €35,000 for a couple with no children, and €20,000 for a single-member household.

The Estia criteria will also apply to single-parent families.