Cabinet extends mortgage-to-rent scheme

Beneficiaries in the mortgage-to-rent scheme are being extended to further aid the financially vulnerable, cabinet decided on Wednesday.

Announcing the decision, Finance Minister Makis Keravnos said the move aims to “further facilitate our fellow citizens who are facing problems with credit acquisition companies and banks that have mortgaged their first home”.

He stated that the scheme, aiming to reduce non-performing loans (NPLs), opened to the public for applications on December 4, 2023. It will remain open for nine months until August 2024, adding that the potential beneficiaries are estimated at around 2,500 borrowers, with approximately 1,450 applications submitted so far.

Referring to the two main categories of beneficiaries eligible to participate in the scheme against instalment payments, Keravnos said that these are “recipients of welfare benefits and non-viable applicants from the Estia Plan who had an unserved loan secured by their primary residence”.

The decision to extend the beneficiaries of the mortgage-to-rent scheme comes after the implementation of the scheme revealed the need for adjustments to include more individuals in need of assistance.

Keravnos stressed that while modifications were necessary to broaden the scope of beneficiaries, the fundamental principles and objectives of the scheme remain unchanged, focusing on supporting vulnerable groups within society.

Specifically, the finance minister proposed that the date of receipt of the allowance for the purposes of inclusion in the scheme be extended from 31 December 2022 to 31 December 2023.

Under the extended scheme, two new categories of beneficiaries have been introduced. The first category pertains to borrowers whose creditors did not participate in the initial Estia Plan, while the second category concerns approved applicants in the Estia Plan whose approvals were not implemented due to various issues, such as outstanding encumbrances on real estate.