In which autonomous communities can you get a mortgage without paying a down payment?

One of the points that should be clear before looking for a mortgage is that, in most cases, banks offer to finance a maximum of 80% of the purchase of a home. In other words, the client must have enough savings to pay the remaining 20% ??out of pocket, a part that is usually called “down payment”, and to face the expenses associated with the processing of the sale, which cost the equivalent of 12 % on the price of the property.

But what happens if the client does not have enough money saved to pay that 20% down payment? In that case, the chances of getting a mortgage decrease drastically. Banks, in general, do not like to finance more than 80% of the purchase, because they risk more: by lending more money, the mortgage loan installments are more expensive and there is a greater danger that the holder of the debt will not I can pay them.

That it is difficult, however, does not mean that it is impossible. According to the financial comparator HelpMyCash.com, there are several ways to get a mortgage that covers up to 90% or even 100% of the purchase. In several autonomous communities, for example, the administration itself grants aid to young people and not so young people so that they can buy their home without having much savings. And in any region of Spain, if the applicant is solvent, they can try to negotiate directly with some banks so that they lend them more than 80% of the cost of the property.

The Community of Madrid is one of the regions of Spain that has a program aimed at young people with few savings. This regional administration has an agreement signed with imagin (CaixaBank’s mobile banking), Banco Santander and Ibercaja so that these entities finance up to 95% of the purchase of a first home.

Through this agreement, the Community of Madrid publicly guarantees up to 15% of the operation, which allows these entities to cover more than 80% of the purchase. To benefit from this program, yes, you must meet certain requirements: be up to 35 years old, not own another home, have legally resided in the region for at least two years prior to the operation and acquire a property with a price that does not exceed 390,000 euros.

A similar program is applied in the Region of Murcia. In this case, it is possible to finance up to 100% of the purchase of a habitual residence, since the administration publicly guarantees 20% of the operation. This aid can be requested if the mortgage is contracted with Cajamar, Bankinter, Caja Rural Central or Caja Rural Regional.

Regarding the requirements, it is also necessary to be young: the age of the applicant(s) must be less than 35 years. In addition, according to HelpMyCash, the buyers’ income cannot exceed 5.4 times the IPREM (3,240 euros gross per month) and the home to be purchased must have a value of no more than 175,000 euros.

The case of La Rioja is a little different. In this autonomous community you can contract the so-called La Rioja Government Mortgage, which is granted by banks that have an agreement signed with the region’s administration: Ibercaja, Laboral Kutxa, ABANCA and Caja Rural de Aragón. With this loan it is possible to finance up to 100% of the purchase, self-promotion or rehabilitation of a habitual residence or a second residence.

This aid, managed by the Housing Institute of La Rioja, is not exclusive for young people: it can be applied for at practically any age. Of course, the buyer must be at least 18 years old and, when the mortgage repayment period ends (up to 30 years), his age cannot exceed 75 years.

According to HelpMyCash, the rest of the Spanish autonomous communities do not grant similar aid. However, if the applicant has a good profile, there are banks that can also finance the purchase and a large part of the down payment regardless of the region in which the home is located. Kutxabank, for example, offers a mortgage of up to 95% if the buyer is under 35 years of age, while Hipotecas.com can cover more than 80% of the purchase price if the person requesting the loan is a career civil servant.

However, it must be known that most banks are not willing to finance more than 80% of the purchase of a house or an apartment. For this reason, hiring the services of a mortgage broker can be convenient to increase the chances of obtaining credit: this professional knows which entities do grant mortgages of up to 90% or 100% and which ones can approve the client’s application if their profile meets certain conditions.

Whichever way the client chooses to get his mortgage without paying most of the down payment, he should always be aware that he will assume a greater risk than if he finances 80% of the purchase. And it is that the amount of your loan will be greater, so you will have to face more expensive installments and it may cost you more to make ends meet.

To avoid unnecessary risks, HelpMyCash analysts advise against requesting a mortgage of more than 80% if you do not have a very solvent profile. A solvent profile is understood as a person who enjoys job stability and who can dedicate less than 35% of their net monthly income to paying their mortgage installments and other current credits.