Garantia pública para aquisição de casa por jovens extingue-se assim que pagos os 15%

Public guarantee for the purchase of a home by young people expires after paying the 15% percent.

The details of the new public guarantee measure for up to 15% of the housing loan value for young people up to 35 years old are still being clarified by the Government. Understand how it will work in case of default.

29 May 20242 min

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State only liable for non-compliance in first 15% of the loan

The new public guarantee measure of up to 15% of the purchase value of real estate for young people by the State will cease when the percentage of the loan covered by the guarantee is paid off. This was explained by the Minister of the Presidency, António Leitão Amaro, according to Notícias ao Minuto.

The explanation was given at the end of the extraordinary Council of Ministers where various measures related to the Government's new housing strategy were approved.

So, what happens in case of default by the young person who accessed the public guarantee? The Minister clarifies that "the guarantee exists until the young person pays the first 15% [of the loan] to the bank", and once these 15% are paid, "the State exits the equation", as stated in the news.

In other words, the State is only called upon to compensate the young person's non-compliance if it occurs during the payment of the first 15% of the loan amount - "in the same way that non-compliance with the bank does not exempt the client from responsibilities," it also says.

"The State is only called if the young person fails to comply and [in that case] the State acts as a guarantor, generating an obligation between the parties," says the Minister, as quoted in the news.

However, it should be noted that Leitão Amaro highlighted that mortgage default levels are low.  

The public guarantee in question is aimed at young people between 18 and 35 years old, with incomes up to the 8th IRS bracket (81,199 euros of annual taxable income) when buying their first home, applied to properties worth up to 450 thousand euros, so they can have access to 100% financing.

The Government aims to implement this measure starting from August 1st.

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