Banks are taking on greater risk in mortgage lending, seeing significant growth potential in the sector; however, many buyers are still turning their backs on the banking system.
Fresh memories of the country’s economic crisis and the large number of our fellow citizens who lost their homes due to bank debt are keeping many out of the banking system, although there are signs that this trend is reversing.
According to data from IMS, a company that provides mortgage brokerage services, banks approve eight out of ten applications for home purchases and are increasing the percentage of the purchase price financed; however, only three out of ten transactions are financed. At the same time, in Europe, one out of every two transactions is conducted through the banking system.
In fact, in the first months of 2026, the average loan-to-value ratio—that is, the amount of the loan relative to the total value of the property—rose to 65% in the first quarter of the year, up from 60% in 2025, according to IMS data. Furthermore, the average loan amount granted is increasing. From €122,000 in 2025, it rose to €132,000 in the first quarter of the year.
Nevertheless, despite the availability of low-interest loans through the “My Home” and “My Home II” programs, the vast majority of transactions are financed with equity.
Kyriakos Kampouris, CEO of IMS, told Euro2day.gr that “while many people pay high rents, they do not go through the process of purchasing a property through financing, as they are afraid.”
“They fear what we went through. During the economic and banking crisis, more or less everyone knew someone who lost their home or took out a loan in foreign currency and may now owe more than they did when they originally took out the loan. “Memories of that period are still very fresh,” he noted.
The rise in loans
The latest data show, however, that new mortgage lending is increasing, albeit at a slow pace. According to IMS, it is estimated that by 2026 it will reach 2.7 billion euros, consisting of mortgage loans (2.2 billion euros) and financing from the “My Home” program (500 million euros).
This represents a continuous increase recorded since 2021. Specifically, total mortgage lending stood at €2.5 billion in 2025, €1.7 billion in 2024, €1.3 billion in 2023, €1.2 billion in 2022, and €885 million in 2021.