The path to rescuing more primary residences is opening up through the Rent-to-Own Scheme, the platform for which has reopened and expires on July 31. Until yesterday, approximately 350 applications had been submitted, a number that exceeds the expectations of the people at KEDIPES.

It is estimated that by the deadline for submitting new applications to join the Scheme, the number may approach 500.

The initial reading of the applications is encouraging, as most of them appear to meet the criteria required to receive the relevant approval.

Since the establishment of the Scheme in December 2023, around 700 applications have been approved to date.

The Scheme was prepared under the Anastasiades administration, and a relevant decision was taken by the Council of Ministers in February 2023.

During the first phase of the Scheme, many applications were rejected as they did not meet even the basic criteria set out in the Ministry of Finance's bill, which was voted on by the Plenary of the Parliament.

The Scheme was also reviewed by the European Commission's Directorate-General for Competition, which determined that no state aid issue arises because the Scheme has a purely social character.

Information obtained by Brief indicates that Banks and Credit Acquisition Companies are showing greater flexibility in cases of borrowers whose primary residence secures the loan, who are factually non-viable, and therefore cannot be included in a loan restructuring plan.

The Initiative With Eligible Borrowers Has Failed

However, the law passed by Parliament for eligible borrowers does not seem to be paying off, despite the views of MPs who had argued that the passage of the relevant law "would create a congestion of borrowers at the Financial Ombudsman's Office."

Characteristically, only one case was handled by the Office. This, moreover, emerges from the annual report, which clearly states that interest in confirming mortgage debt prior to foreclosure is limited.

Despite initial estimates of a potential increase in complaints against Financial Institutions and Credit Acquisition Companies, a decrease was recorded in 2025 compared to 2024.

This development is linked, among other things, to the low utilization of the procedure for confirming the required mortgage debt by eligible debtors before foreclosure, despite the relevant expansion of the Financial Ombudsman's competencies since December 19, 2023.

As reflected in the relevant data, in 2025 only six requests were submitted, compared to 14 in 2024, while since the entry into force of the regulation, only one (1) case has been examined on its merits, as the overwhelming majority of requests did not meet the conditions of the law due to the existence or pending status of court proceedings or other reasons.

It is clear as day that, at the current stage, this specific institutional mechanism has not yet acquired the required operational effectiveness to fulfill the purpose for which it was established.

The experience from the implementation of the current legal framework has highlighted practical and institutional gaps, which, in practice, limit the substantive ability of debtors to effectively exercise their rights, especially regarding the possibility of an actual settlement of debts after the issuance of a binding decision by the Financial Ombudsman regarding the real amount of the required sum.

Source: ink.com