The Bank of Greece, the country’s central bank, again named residential property prices among areas with emerging cyclical risks in its Financial Stability Review, published on 22 October 2026. Its caps on home loans stay in place.
The executive summary lists house prices alongside credit to non-financial companies and the current account as areas showing emerging risks. Overall, the Bank finds no excessive credit growth. It assessed cyclical systemic risks as low during 2026. Its countercyclical capital buffer, an extra capital cushion for banks, stays at 0.5%, the rate set in October 2025 and applicable from 1 October 2026.
The borrower limits that matter to buyers are unchanged. Since January 2025, loans to individuals secured by homes in Greece have been capped at 90% of the property’s value for first-time buyers and 80% for other borrowers. Total debt repayments, measured when the loan is granted, are capped at 50% of income for first-time buyers and 40% for others.
The review also reports on the banks themselves. Greek banking groups made €2.6 billion of profit after tax and discontinued operations in the first half of 2026, up 3.8% on a year earlier. The non-performing loan ratio, on a solo basis, edged up to 3.4% in June 2026 from 3.3% in December 2025. The Bank names geopolitical tensions, higher international energy prices, a possible sharp repricing of assets on international markets and the fast development of frontier AI models as the main risks.
What it means for buyers
A first-time buyer with a Greek mortgage can borrow up to 90% of the property’s value, and other borrowers up to 80%. The rest of the price is not covered by the mortgage. The repayment caps can also limit the loan size, depending on the borrower’s income and existing debts. The house price assessment does not change any lending rule. For how Greek prices compare with other markets, see our report on Greek house prices against Europe.
What happens next
The Bank reviews cyclical risks and the capital buffer every quarter. Its latest quarterly decision, published on 8 October 2026, is covered in our report on the Bank of Greece’s house price warning for Q4 2026.
