Public guarantee in mortgage credit depends directly on the financed amount.

State guarantee only covers 15% of the home loan when the bank finances 100%.

According to the General Directorate of Treasury and Finance (DGTF) - as read on Notícias ao Minuto - the maximum guarantee of 15% is only granted when the bank covers the entire value of the transaction.

In an official document, the DGTF clarifies that the state guarantee can reach up to 15% of the transaction value, but will be adjusted proportionally when the bank finances less than 100% of the total amount.

To illustrate these conditions, the DGTF presents an explanatory table showing how the guarantee varies according to the bank's level of funding.

• When the bank finances 100% of the property value, the guarantee covers 15% of that value.

• If the bank finances 95% of the value, the guarantee is adjusted to 10%.

• For financing of 90%, the collateral is 5%;

• When funding is 87%, the guarantee decreases to 2%;

• If the bank finances only 85% or 86%, the public guarantee is limited to 1%.  

According to calculations made by Lusa, disclosed in the news, in a property valued at 200 thousand euros, financed at 100%, the public guarantee would be 30 thousand euros (15%). In the same property, if the bank finances only 90% (180 thousand euros), the guarantee decreases to 10 thousand euros (5%). If the financing is 85% (170 thousand euros), the guarantee covers only two thousand euros (1%).

The value that banks are willing to finance depends on the evaluation of the property and the financial capacity of the clients, namely their income and the debt-to-income ratio. 

What are the access requirements for the measure?

This measure, launched by the Government in July, was created to facilitate access for young people up to 35 years old to purchase their own permanent homes, especially in a housing crisis context. At the same time, IMT and Stamp Duty exemptions for first home purchases by young people up to 35 years old have been in effect since August.

To benefit from the public guarantee, it is necessary:  

• Acquiring the first own and permanent housing;

• The property does not have a value exceeding 450,000 euros.

• The buyer does not own another residential property.

• The annual income of the household does not exceed the 8th IRS bracket (approximately 81 thousand euros of taxable income).

The measure applies to contracts signed until the end of 2026 and allows the State to act as a guarantor, covering up to 15% of the transaction value.

Are you young and want to buy a house accessing public guarantee? Let the credit intermediaries from Poupança no Minuto answer all your questions and take care of the entire process for you, ensuring the best proposal on the market and the most advantageous conditions for you! Simulate financing now: