In a surprise move, the government informed the banks that the “My Home II” program is being discontinued (ending early) on June 2, 2026, instead of its original duration, which was until August 31, 2026, as it has in the works, following a relevant agreement with the European Commission, the “My Home III” program with more attractive terms.
According to reliable information from Euro2day.gr, in the middle of last week, and since then an alert has been issued throughout the system to inform potential borrowers who have enrolled (without having drawn down funds) in the housing program, which is accompanied by a state interest rate subsidy.
According to market sources, the redesign is part of the broader economic policy overhaul being pursued by the government, against the backdrop of the start of the election year.
“My Home III” is coming
Sources familiar with the matter emphasize to Euro2day.gr that the government made this decision as it has a new program in the works "My Home III," into which it will transfer the funds remaining unallocated from "My Home II" along with new resources, and will expand the scope regarding the age of eligible properties, making the eligibility criteria for the (new) “My Home III.”
To date, of the €2 billion allocated to My Home II , approximately €1.1 billion has been disbursed (€1.046 billion as of April 16), and applications total approximately €1.6 billion.
The question that naturally arises, of course, is what will happen to the potential borrowers who have applied for “My Home II” but have not yet completed the home purchase transaction, as they are either in the middle of the process, having found a property, or have not yet found a home.
According to banking sources, those who do not meet the deadline by June 2 will have to repeat the steps to join the new program, My Home III.
The… provision of seniority
To offset the confusion that the sudden suspension will cause for those enrolled in the current program, according to the same sources, the government’s “gift” of increasing the age limit for My Home III and the possible adoption of more flexible income eligibility criteria.
A key "sticking point" in both "My Home I" and "My Home II" was the restriction regarding the age of the property, which pertains to the issuance of a building permit in 2005 and the construction of the building by 2007.
A criterion that, according to banking sources, increases the difficulty of finding homes for sale and leads to rising prices, thereby acting as a roadblock to achieving the goal of affordable housing, upon which these specific programs were based.
Why the rush?
Sources at the Ministry of Housing confirm the June 2 deadline. They note that the date was set in order to finalize the program’s quantitative milestone so that the revision can be approved, following an agreement on the timeline with the European Commission, so that the final loan payment request can be submitted on time and accurately.
Those who have signed contracts under My Home II by June 2 are not affected.
According to official data, under the My Home II program, 13,461 loans totaling 1.6174 billion euros have been approved to date, with an average loan amount of 120,150 euros.
The absorption rate of the total budget stands at 84.1%.