This young couple saved about 60 thousand euros by accessing 100% home financing.

Measurement of public guarantee for youth allows financing at 100%

Buying a house is a big financial step, and for many Portuguese, the biggest obstacle is the initial down payment required by banks for the granting of a housing loan.

With this question in mind, the Government decided to implement, in 2024, a package of measures aimed at supporting young people in buying a house. One of the measures involves a public guarantee that ensures the remaining value not financed by banks in the purchase of a house (up to 15%) for young people up to 35 years old.

By meeting the access requirements for the measure, young people can now access 100% financing for home loans. These are the requirements they must meet:

• Be between 18 and 35 years old (inclusive).

• Have fiscal domicile in Portugal.

• To earn annual taxable income of up to 80,000 euros, corresponding to the 8th IRS bracket.

• Not own any other residential property.

• Allocate the property for the acquisition of the first permanent and own housing.

• The property transaction value cannot exceed 450,000 euros.

• To have the fiscal situation regularized before the Tax Authority and Social Security, with no pending debts.

• Not having previously benefited from public guarantees from the State for the purchase of housing.

This couple already accessed the support and managed to save thousands of euros.

The couple, Andreia and Carlos, were one of those who have already benefited from this support, having managed to save between €29,900 and €59,800. This is because the value of the property they bought was €299,000, and without the measure, they would have had to provide between 10% and 20% of that amount to the bank.

Both Andreia and Carlos have a monthly net income of 2,200 euros, which allows them to afford the highest monthly net installment - 1,065.59 euros - because it corresponds to the total value of the house purchase, without having paid an initial down payment.

Through the government incentive program, the couple obtained a Loan-to-Value (LTV) of 99.67%, which means that practically the entire value of the property was covered by the bank loan. This allowed them:

Avoid a large initial expense, keeping your savings for emergencies and other expenses.  

Ensure financing with advantageous conditions, including a spread of 0.75% and a APR of 2.70% for the first five years.

Maintain your financial stability, as your monthly income allows you to support the installment without compromising the family budget too much.

With this solution, the couple was able to buy a property without compromising their finances, becoming owners without the need for a high initial investment. With credit adapted to their financial conditions, they were able to achieve the dream of owning a home affordably.

Do you also want to achieve this dream? The credit intermediaries of Poupança no Minuto can make it happen! At no cost, they handle all intermediation with banks and find the best financing proposal for you, with access to public guarantee measures. Simulate now and bring your dream to life: