Since the approval of the Government guarantee aimed at facilitating the acquisition of homes for young people and families with dependent minors was announced, interest and expectation have been considerably high.
Managed by the Official Credit Institute (ICO), this guarantee seeks to back up to 20% of the mortgage, allowing banks to finance up to 100% of the purchase, as opposed to the usual 80%. This change represents a significant reduction in the savings necessary to apply for the loan, going from 30% of the price of the home to the 10% required to cover expenses and taxes.
But this benefit will not be available to everyone, since there are requirements established by the Government that must be rigorously met. HelpMyCash.com, through a free simulator, allows you to determine in less than a minute if these requirements are met, which include having legal residence in Spain during the two years prior to the application, as well as being under 35 years of age or being responsible. of minor children, regardless of age in the latter case.
In addition, annual gross income limits are set that vary depending on the family situation, from 37,800 euros for individuals to 80,640 euros for families with two dependent children. Likewise, the applicant’s assets cannot exceed 100,000 euros and the home to be acquired must be their habitual and permanent residence for at least ten years.
Experts, however, warn that even if the requirements are met, it is not yet possible to request guarantees, since the Government is in negotiations with the ICO and banking entities to finalize the agreements and determine which institutions will adhere to the measure.
Meanwhile, for those who do not meet the requirements or those who meet them but do not want to wait for approval, there are other alternatives to obtain 100% financing.
“Some banks such as Ibercaja, Santander or Unicaja offer special mortgages for young people with financing greater than 80%. In addition, mortgage brokers can obtain a 100% mortgage without the need for government endorsement,” explain HelpMyCash specialists.
It is important to note that any of these alternatives require applicants to demonstrate job stability, sufficient income and savings to cover the expenses and taxes of the purchase, which represent approximately 10% of the value of the home.
On the other hand, some autonomous communities offer specific aid for the purchase of the first home. For example, in Madrid, there is the “My First Home” plan, aimed at young people up to 35 years old, which allows them to obtain a mortgage of up to 95% guaranteed by the community. Soon, the age range will be expanded to 40 years and the financing percentage to 100%.
“In Catalonia and the Valencian Community, although there is no specific aid for mortgages, tax reductions are offered that alleviate the financial burden for buyers,” they add from HelpMyCash.
