He Minister council This Tuesday he resumed line of guarantees of 2,500 million of euros, announced in May of last year and stopped by the general elections in July, with which it plans to facilitate 50,000 young people between 18 and 35 years old and families without age limit with minor dependent children can access the purchase of a home. The State, thus, will endorse the 20% of the value of the transaction (measured as the lower of the appraisal or the purchase price), with the objective that the banks finance 100% and buyers only have to have saved 10% to meet expenses, such as taxes, notary and registration. If the home has an energy rating of D or higher, the guarantee may reach 25%.
The beneficiaries must have individual income maximums of up to 37,800 euros gross per year (4.5 times the IPREM). In the event that the home is acquired by two peoplethe income limit will be raised to double (75,600 euros). There are also factors for improvement depending on the number of children and whether the family is single-parent. Thus, this limit will be increased by 0.3 times the IPREM (2,520 euros annual gross) for each minor in charge and, furthermore, in the case of family single parent The limit may be increased by 70% additional. Additionally, the heritage of buyers will not be able to exceed the 100,000 euros.
The beneficiaries must also prove that they have living legally in Spain at least during two years continuously and uninterruptedly. The guarantees will only benefit the purchase of first homes (not second homes or acquisitions as investments). The guarantee will have a duration of 10 years (regardless of whether the credit has a longer term). During that decade, buyers must reside in the property permanently (they can only rent it in the event of circumstances that require a change of residence, such as marriage, separation or job transfer).
Maximum house price
The line will be in force until December 31 2025, but the Government has left open extend it for two years further. Once the Council of Ministers has given the green light to its conditions, the Ministry of Housing and the Official Credit Institute (ICO) They will now sign an agreement to implement and manage the guarantees. In said agreement, a maximum price or appraisal of the homes that can be acquired with charge to the line, which “may be set based on the territorial scope” in which it is located. Said maximum value may be modified by the monitoring commission that will be created.
The financial entities They may then join the agreement and begin granting guaranteed loans. The housing minister, Isabel Rodriguezhas expressed confidence that the banks will join the project and has pointed out that both her department and the Ministry of Economy have already maintained meetings with the sector. As a wink, the cost of the guarantee, which was initially going to be assumed by the entities, will finally be free for them, as well as for the buyers.
Rodríguez has also recalled that buyers must have some stable income and that, based on this income, the banks will decide what is the maximum amount that they are willing to lend to them, which in practice already represents a limit to the price of real estate. “The objective is that no citizen has to allocate more than 30% of your salary to pay the rent or mortgage,” he noted, referring to the limit that is commonly considered financially prudent.
Difficulty of entry
Since the previous financial crisis, the banks only finance usually a maximum of 80% of the value purchase or appraisal of the home. This is a measure of prudence imposed by the supervisors so that the large losses caused by the bursting of the real estate bubble and which caused the disappearance of a good part of the savings banks are not repeated. With the 20% guarantee, the Government intends that young people and families with minors can access a loan equivalent to 100% of the value of the property. Of course, buyers must have saved the equivalent of 10% of the value of the transaction, since that is the approximate amount that needs to be disbursed to cover additional expenses (such as taxes, notary and registration).
The measure was already known, it was announced for the first time by Pedro Sánchez in May 2023, in an event in the pre-campaign of the regional and municipal elections on May 28, in which the president chained several announcements on this matter, including the construction of hundreds of thousands of new public housing. That same month, the Council of Ministers even commissioned the Ministry of Transport and the ICO to articulate the line of guarantees, but the call for the general elections in July paralyzed the project.