The Balearic Government has increased to 382,000 euros the maximum price of homes that can benefit from up to 20% that allows buyers to cover the total mortgage, without having to advance an entrance. The Jove Mortgage Program benefits mainly under 40, single -parent families, numerous and people with disabilities who want to acquire their usual housing and do not have other properties. The escalation of housing prices on the islands in recent years has increased the maximum amount of homes that can access the program, which was located so far in the 270,000 euros. “There were many homes that were left out,” said the Balearic president, Marga Prohens.
In addition to those under 40 and specific groups, those of that age also with a guarantee of up to 15% depending on their personal conditions. The maximum revenue limit of the beneficiaries is 60,666 euros per year for a borrower and 68,250 euros for two or more borrowers and it is also necessary to prove at least five years of residence. “There is a new generation of young people formed, who have done what society asked, but now they are limited and have no capacity to emancipate or start their life project,” said the president. The program has only adhered, for the moment, three banking entities: CaixaBank, Savings Bank of Pollença and Cajamar.
Financing operations have to be completed through a mortgage loan contract paid with funds from the financial entity, which cannot require the hiring of any additional product for the granting of the loan as it happens frequently. The entity must finance from 80% to a maximum of 100% of the housing acquisition value. Through this program, initiated in the last legislature by the Executive formed by PSOE, Més and Podemos, the Balearic Institute of Housing (Ibavi) has approved 499 guarantees for 15 million euros, with 418 in Mallorca, 62 in Menorca and 19 in Ibiza.
The bulk of the financial operations corresponds to CaixaBank, with 202, followed by the Pollença savings box with 199 and Cajamar with 98. In the last two years, the subscribed operations have not required that the Balearic Executive have to present the endorsement by default.
Last December the Regional Government decided to renew this program, expanding the application and formalization deadlines of loans until February 2028. The total amount to guarantee the guarantees is 30 million euros “that will be extended if necessary,” as the vice president and advisor to the Treasury, Antoni Costa.
