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Deadline on “Estia” scheme changed

Deadline Extended on “Estia” mortgage relief scheme until the end of this year!

The Deadline on “Estia” mortgage relief scheme got extended,due to the poorly submission. Since,people enjoy another chance to be part of it,I thought we should find out what it means.  So,what does “Estia” scheme means?

The ‘Estia’ Scheme is a special government scheme drawn up by the Ministry of Finance and approved by a European Commission, in order to help struggling home owners. After you complete the applications,you need to submit them. Where you do this? Well,you can only submit them to the bank or to the credit acquiring company of the debtor in question.

The banks and companies that participate in the scheme are:

  •  the Bank of Cyprus
  •  the Hellenic Bank;
  •  Alpha Bank,;
  •  Eurobank;
  •  Astrobank;
  •  the Cyprus Asset Management Company (Kedipes);
  •  Also,the National Bank of Greece and Gordian Holdings.

The main reason of all of this is to assist, protect and help the families that had to mortgage the primary residences in order to get their loans. Therefore, this scheme will help reduce the number of bad debts.

Who can apply for Estia “scheme”?

Well,to benefit from this ,your household must not exceed the following:

  • €20,000 for a single-member household;
  • €35,000 for a couple with no children;
  • €45,000 with 1 dependent and €50,000 for a family with 2 dependents; also, €55,000 for a family with 3 dependents and €60,000 for a family with at least 4 dependents.

Worth mentioning: The Estia criteria will also apply to single-parent families.

And so the Deadline extends ….

The cabinet extends the deadline to the end of this year. Why this happens? Let’s say the reality didn’t match the expectations. According the government, they predicted around 10,000 applications for debt relief. Yet by early October, only a few hundred applied. Their answer to this mistery: the complexity of the application process.

Though it may sound easy, it’s quite the opposite : the form consists more than 30 pages and the applicants must provide around 50 different documents to acquire this help. In addition, it not helps that people in general distrust to disclose information that can lead to tax audits and more.
Above all, the program applies only to loans (mortgages)considered as “non-performing” before the date of 30 September 2017. All of the non-performing credits after this date, aren’t eligible. Also, you must know that Estia applies to the first mortgage on a residence and covers loans or credit facilities regardless of currency.

How it works?

If eligible, an applicant’s loans will be de reduced to the market value of the primary residence. Than, the debtor will have to pay two-thirds of the rescheduled loan every month. After, the taxpayer (represented by the state) will subsidize one-third of the monthly instalments on that rescheduled loan.

In case you would like to know other info about this subject, you can check this page http://mof.gov.cy/en/useful-links/the-estia-scheme or any of the website pages of the banks, mentioned up. Also, Cyprus Mail mentions any time there are fresh news about this subject.

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