The Bank of Greece (BoG) announced its decision to impose a ceiling on new mortgages in an effort to prevent excessive lending.

According to the new rules that will apply from January 1, 2025, the loan cannot exceed 80% of the commercial value of the property. However, the percentage rises to 90% for those who take a mortgage for the first time.

Moreover, the cost of servicing a borrower’s loan obligations cannot exceed 40% of their annual income, with the exception of young buyers, for whom the limit rises to 50%.