Finance & Investment advice:
Yes, it is possible to get a mortgage in Greece.
Interestate is also an appointed Mortgage Broker and we have excellent relationships with several Greek Banks (National bank, Alpha, Commercial and Peiraios). We will do all the ground work for you. The process is similar to most European countries. To apply for a mortgage you will need your passport and proof of income for the last 2 years (P-60's, payment stubs, or tax returns if self-employed).These now have to pass through the legalisation office at
http://www.fco.gov.uk/en/about-the-fco/what-we-do/docs-and-legal-services/legalisation/ please refer to this before sending documents.
Mortgages are available in Rhodes on residential properties. All loans are available on a capital and interest repayment basis. Mortgage loans are based on income. Therefore proof of income is required for all cases. Mortgages can be arranged in Euros, Sterling, US Dollars and even Swiss Franks where the lenders may also take into consideration rental income when assessing income.
Almost all types of mortgages are available in Rhodes seeming banks are considered head offices for the Dodecanese prefecture.
Interest rates have increased many times in 2006. 2007 is set to see the same pattern. 2006 saw more and more fixed and interest only local mortgages from Greek banks and current rates are approximately 4.87% for a fixed or a standard variable rate of 4.5%.
The bank will charge mortgage set up fees according to bank needs at that specific time (approximately 1,500 €- check with us prior to procedure). The bank will probably also require you to take out annual property insurance, please refer to our Insurance Department.
Another cost to be aware of when purchasing a Greek property through local financing is the bank's pre-notation charges. The bank will place a pre-notation of the total loan amount plus an additional 20%. This may differ in the coming months to up to 0%.
In the event that you default and the bank takes possession they would seek to recover the outstanding loan amount plus the 20%.
Any investment or financial advice given by Interestate, its agents or associates are a guide only and expert tax, financial planning and mortgage advice will be required to confirm information when purchasing a property.
