The Mortgage to Rent ( MtR ) scheme for vulnerable lenders will come into force on December 4, Treasury Permanent Secretary George Panteli said on Friday as he introduced the scheme at a press conference.
He added that the scheme would come into force in December as parliament had yet to formally pass the bill and was scheduled to be debated next Monday so it could be sent to the plenary for a vote next Thursday.
Under the Mortgage to Rent scheme, designed to help homeowners at risk of losing their property due to mortgage debt, a person voluntarily transfers ownership of their home to their lender for five years. The organization buys the house from the lender and becomes the landlord. During this time, the borrower no longer owns their home but will continue to live in it as a tenant.
The MtR stipulates that applicants who meet the basic criteria – provided they have a certificate of title – will transfer ownership to asset management company Kedipes , which will sign a 14-year contract with them.
Panteli said the budgetary cost of the plan is estimated at 200 million euros over the next two years, corresponding to 0.9 percent of GDP.
In his speech, Finance Minister Makis Keravnos said the MtR plan complements the list of measures presented by the government to manage bad loans. He called on vulnerable groups to take advantage of the opportunity given to them, “which we believe is a way out of the current problem.”
The Cabinet of Ministers approved the scheme in July 2023.