Additional safety net provisions have been included in ‘Estia’ scheme so as to assist, support and protect vulnerable households who have mortgaged their primary residences. And not to reward strategic defaulters, insiders told Phileleftheros.
The ‘Estia’ mortgage relief scheme was officially launched on Monday and only applies until the income and assets of a beneficiary are improved. That is, when these are increased by 30% then the State will immediately stop paying 1/3 of the instalment of his/her restructured loan.
The mandate of a special committee to be set up, that will also include officers from the Ministries of Labour and of Finance, is the thorough review of a beneficiary’s income and assets prior to handing out the annual grant.
The review of applications is set to be carried out before the end of the year, since the state grant will be handed shortly afterwards and, specifically, within the first quarter of the new year.
The procedure to be followed for the review of applications has not been drafted out as yet. However, it is expected that a beneficiary’s bank accounts will be audited, plus the Land Registry will also be asked to give information on his/her state of play.
After a beneficiary’s financial situation is improved, he/she will not be asked to pay back the grant received from the State. But the loan subsidy will simply come to an end.
‘Estia’ applies to loans (mortgages) that were deemed non-performing on September 30, 2017. Loans designated as non-performing after that date are not eligible. The primary residence which is mortgaged must have a maximum market value of up to €350,000.
‘Estia’ applies to the first mortgage on a residence, and covers loans or credit facilities regardless of currency.
Total household income of the applicant must not exceed the following:
- €60,000 for a family with at least four dependents;
- €55,000 for a family with three dependents;
- €50,000 for a family with two dependents;
- €45,000 with one dependent;
- €35,000 for a couple with no children;
- €20,000 for a single-member household.
An applicant’s other net assets in 2016, 2017, and 2018, must not exceed 80 per cent of the market value of the main residence after its evaluation.
In any case they should not exceed €250,000.
Read more:
https://in-cyprus.com/constant-supervision-for-estia-scheme-beneficiaries/
