Although mortgage lending in Greece remains modest compared to pre-crisis levels, the market has shown a steady upward trend since 2020. According to the Bank of Greece’s latest Financial Stability Report, Q4 2024 marked a significant milestone, with mortgage disbursements reaching €412 million—a 25.8% increase from Q3 and a 44.2% surge compared to Q4 2023.
While mortgage volumes are rising, they are still far from their historical peak. For context, mortgage disbursements in 2005–2008 averaged around €12 billion per year. In comparison, 2024 closed with €1.3 billion, up 32.6% year-on-year from €1 billion in 2023.
Loan-to-value (LTV) ratios have remained below 63% since 2021, with the average loan amount typically covering between 60.1% and 64.6% of the property’s value. This signals that banks are requiring higher borrower equity, a trend that continued into 2024.
The Debt Service-to-Income (DSTI) ratio, a key measure of monthly installment burden relative to borrower income, remained below 33% on average, although a small portion of loans showed higher stress levels. Notably, some of these more lenient cases were tied to the government’s ”My Home II” program and end-of-year disbursements.
Loan maturity is also trending longer. The share of mortgages with terms exceeding 30 years rose significantly in the second half of 2024, reaching 10% in Q4, compared to 6.3% in Q3. While longer durations reduce monthly payments, they may limit future restructuring flexibility.
Greek Households’ Net Wealth on the Rise
The Bank of Greece also included an analysis of household balance sheets based on experimental indicators developed by the ECB. According to the data, the adjusted net wealth per capita in Greece reached €89,890 in Q3 2024—an increase of 9.3% year-on-year.
This growth was largely driven by rising residential property values, which now represent nearly 68% of total household wealth. Meanwhile, household debt remains low by European standards: the debt-to-assets ratio dropped to 8.8%, compared to 9.6% a year earlier and 10.8% across the eurozone.
