Young people up to the age of 35 have already used around 40.3% of the total amount allocated for the public guarantee when purchasing a home, which represented 25.3% of the total housing credit contracted until September.
According to data from the Bank of Portugal (BdP) released today, since the beginning of the year, 478 million euros have already been used under this regime that allows the State to guarantee, as guarantor, up to 15% of the value of the transaction.
Between January and September, 79,850 contracts were made totaling 13,703 million euros for the purchase of permanent home ownership, of which more than a fifth were within the scope of this guarantee.
Until September, there were 17,758 contracts for the purchase of permanent housing by borrowers up to the age of 35 who were approved for purchase under this initiative, representing 22.2% of the total and representing 3,472 million euros (or 25.3% of the total granted).
Among all young people up to the age of 35, 43,797 contracts were signed and 8,113 million euros in housing loans were granted, which means that contracts under the guarantee represented 40.5% of new loans and 42.8% of the volume contracted up to this age.
In September alone, 2,423 contracts were signed, worth 496.9 million euros, through the public guarantee, representing 25.9% of the total contracts and 29.2% of the amount allocated.
Contracts under the guarantee also represented 47.3% of credits contracted by young people up to 35 years of age and 48.9% of the amount.
According to the BdP, in the regions of Alentejo, Beira Baixa, Lezíria do Tejo and Terras de Trás-os-Montes, until September, more than half of the credit contracts for permanent home ownership signed by young people were contracted with a State guarantee.
Conversely, the proportion of houses purchased for young people using the guarantee was lower in Greater Lisbon and the Autonomous Region of Madeira, representing around a third.
The public guarantee for housing credit for young people up to 35 years old (inclusive) applies to contracts signed until the end of 2026 and allows the State to guarantee, as guarantor, up to 15% of the value of the transaction.
In practice, and combining this guarantee with the rules for granting housing credit, the measure allows young people to obtain 100% of the home’s appraised value, instead of the 90% limit that applies to most customers.
Anyone aged between 18 and 35 years old (inclusive) and who is purchasing their first permanent home, the value of which does not exceed 450 thousand euros, can benefit from this guarantee on home loans.
Beneficiaries cannot be owners of an urban building or fraction of an urban building and cannot have income higher than that of the eighth income bracket of the IRS (around 81 thousand euros of annual taxable income).
The post 25% of Housing Credit with State Support appeared first on Veritas News.
