Can benefit from this guarantee who has between 18 and 35 years old (including) and that is Buy the first permanent housing whose value does not exceed 450 thousand euros. Beneficiaries cannot be urban building owners or urban building fraction And they cannot have higher income than the eighth level of the IRS (about 81,000 euros of annual collected performance).
The president of Paulo Macedo, said on Thursday that the public bank has already exhausted the amount provided by the State for the credits to housing it can grant using the public guarantee.
“In our case, we already have more processes [de crédito] Approved than the amounts contracted under warranty, although the realization is slow, “said CGD CEO (CEO), Paulo Macedo, in the presentation of Century 21 Real Estate Observatory in Lisbon.
According to the manager, after aproven loans for home purchaseI and realization is slower. This must have to do with the time and the need to gather documents for the formalization of credit and the Scriptures.
Public Guarantee for Housing Credit
Public guarantee for housing credit to young people up to 35 years (including) applies to contracts signed until the end of 2026 and allows the state to guarantee, as a guarantor, until 15% of the transaction value.
In practice, and combining this guarantee with the rules for granting housing credit, the measure allows young people to be able to obtain 100% of the value of the house evaluationinstead of the 90% limit that prevails for the general clients.
The government defined the maximum amount of public guarantee in 1,200 million eurosbeing distributed a quota to each bank, but opened the possibility that this amount is reinforced if the banks exhauses it and if they ask for this reinforcement.
According to the government’s December order, Santander Totta has the largest share of the value that the government has allocated to the public guaranteewith 259 million euros. CGD is the second with the highest quota, with 257 million euros.
Who can benefit?
Can benefit from this guarantee in housing credit who has between 18 and 35 years old (including) and that is Buy the first permanent housing whose value does not exceed 450 thousand euros. Beneficiaries cannot be urban building owners or urban building fraction And they cannot have higher income than the eighth level of the IRS (about 81,000 euros of annual collected performance).
Despite the public guarantee in housing credit, according to several banking and real estate experts, the problem is that even with the warranty many young people do not have enough income and cannot meet criteria to access credit to buy home.
