To buy or build a property through your newly established legal entity in Greece, you may take out a fixed-rate business loan at 4.50% for up to 15 years or choose a floating interest rate linked to the 3-month Euribor and a low spread. Our representative guides you right from the beginning and through every step of the process. Loan pre-approval is available in a few days, provided you have submitted all the documents requested. You can get pre-approval before you set up your legal entity in Greece or start banking with Eurobank as a business owner. All you need to do is to submit the necessary documents.
Express your interest and one of our representatives will contact you.
Take out a commercial mortgage
Alternatively, call the dedicated EuroPhone International Banking customer service line:
- + 302109555345, 7 days a week, 8:00 am to 11:00 pm (GMT +2).
For newly established businesses
You may apply for the commercial mortgage provided you have or you are going to set up a new legal entity in Greece.
The legal form of your legal entity can be a private company (IKE) or a Société Anonyme (SA).
Loan amount starting at €300,000
Your personal income, creditworthiness and the value of the property in Greece determine the amount of your commercial mortgage.
- If you are buying a home, the loan amount cannot exceed the amount written in the real-estate purchase agreement.
- If you are building a home, the loan amount may reach up to 100% of the costs.
The business loan amount also depends on the commercial value of the property used as collateral. It may reach up to 80% of the commercial value of the property, provided it is energy efficient.
The commercial value of a property is determined by an independent certified engineer / appraiser, who inspects the property.
Loan term up to 15 years
The term of your commercial mortgage can reach up to 15 years, whether you choose a floating or a fixed interest rate.
Loan collateral
It is necessary to offer some kind of collateral to secure your commercial mortgage:
- Mortgage lien on property – In this case you must take out insurance on the property against fire, earthquake and weather conditions (flood, storm, squall, snow, hail and frost), as a minimum.
- 100% cash collateral in a special collateral account with favorable rates. It only applies for floating-rate loans.
- Cash collateral with time deposit or pledge on securities, such as mutual funds, bancassurance products etc.
Lump-sum or multiple disbursements
Your commercial mortgage is disbursed based on the purpose of the loan:
- In a lump sum, when you are buying a move-in ready home.
- In multiple disbursements, when you are buying a home under construction or when you are building your home. Amounts are disbursed each time based on the progress of the construction.
4.50% fixed interest rate
Choose a commercial mortgage with 4.50% fixed interest rate +0.60% (Law 128/1975 levy) for the entire loan term if you want to enjoy the security of a fixed and predetermined instalment that allows you to accurately calculate your finances.
Floating interest rate
Choose a floating interest rate if you want your commercial mortgage to match the fluctuations in the market interest rates.
Floating rates are linked to the 3-month Euribor, which is adjusted monthly. It comes to:
Base rate (3-month Euribor) + spread range 2.70%-2.95% + 0.60% (Law 128/1975 levy)
Spread
The spread remains fixed throughout the term of your commercial mortgage. It is finalised upon final approval of the loan.
The spread is the difference between the interest rate the bank borrows at and the nominal rate the bank charges its client.
Discounts off the interest rate
Favourable rates for floating interest rate with 100% cash collateral.
If you choose 100% cash collateral, your loan interest rate can be the 3-month Euribor. A +1.00% spread is added to this. The deposit and loan interest rates are linked to the same base rate for the entire financing term, with a stable rate difference of +1.00%.
- Deposit interest rate: 3-month Euribor. Up to 15% tax is calculated on credit interest.
- Loan interest rate: 3-month Euribor + 1.00%. The Law 128/75 levy of 0.60% is added to that interest.
These favourable rates cannot be combined with other discounts off the interest rate.
Commercial Mortgage Amortisation
Say you borrow €800,000 at a fixed rate of 4.5% for 15 years.
The total cost of your loan comes to €346,758, broken down as:
- €346,258 interest.
- €500 evaluation fees.
So, at loan maturity, the total amount you will have paid comes to €1,146,758.
Upon assessing the property, a mandatory annual premium for fire and earthquake insurance cover will be paid to the insurance company.
One-off technical and legal due diligence costs will also apply, depending on the location and type of the property. (paragraph 9.2 Banking Transactions Price List)
Monthly instalments
The instalment you pay each month repays interest and part of your loan principal.
We collect the instalment on the first working day of each month. The amount is withheld automatically through the bank account linked to your loan. You must ensure the account has adequate balance.
Through your Eurobank e-Banking, you can monitor your loan instalments under e-Statements.
Premiums
If you are securing your loan with a lien on property, you must take out fire and earthquake insurance on the property.
In case there is damage to the property due to these risks, the insurer covers the costs to restore the property.
You may choose any insurance company that operates in Greece.
