Applications for a 2% mortgage interest rate subsidy opened on Thursday 2 January for households that have taken out loans for owner-occupied housing. The scheme aims to mitigate the negative effects of inflation and rising interest rates on disposable incomes
Information provided to StockWatch by the implementing agency, the General Accounting Office of the Republic, indicates that the scheme is available to individuals who secured loan agreements between 1 January 2022 and 31 December 2023 for the purchase or construction of their first home. However, in its initial two days, the scheme has seen limited uptake.
Despite this, many prospective applicants had previously sought details about the programme, which offers a 2% subsidy for a period of 24 months following loan approval.
The scheme provides a subsidy covering 50% of the average increase in the interest rate experienced by borrowers compared to the rate in effect at the time of signing their loan agreement. This support is available for two years from the initial disbursement of the loan.
To qualify, applicants must meet specific criteria: the mortgage must be performing and not exceed €400,000.
Additionally, eligible households must have a family income below €50,000 and must have resolved all tax obligations up to 2023.
The Mortgage Interest Subsidy Scheme, approved by the Council of Ministers on 11 December 2024, is part of a broader set of government measures aimed at alleviating the financial strain on citizens caused by rising costs of living.
The scheme is backed by a budget of approximately €33 million.
Eligible individuals must submit their applications using the form available on the General Accounting Office’s website. Completed forms, along with required documentation, must be delivered in printed form to Citizen Service Centres (KEP) or District Citizen Service Centres (KEPO) by 28 February 2025.
