More housing: Deco warns that a quarter of credits will not receive support

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The government approved this Thursday support measures for housing loans and rents. However, both measures have conditions and, according to Deco, not everyone will benefit.

The government’s help to pay the rent and the installment of the house may reach only a minority of Portuguese. The executive plan was presented this Thursday as ambitious, but Deco Proteste, which did the math, came to less encouraging conclusions.

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The increase in mortgage installments and the shortage of houses on the market have created difficulties for the Portuguese. Therefore, this Thursday, the government approved the measures of the “More Housing” program, which have caused less discussion.

As far as housing loans are concerned, loans for the purchase, construction or renovation of houses for one’s own permanent residence will be covered up to a maximum value of 250,000 euros. Only families up to the sixth income bracket, i.e. up to 38,632 euros per year, will benefit.

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Households must also have an effort rate of more than 35%, a value calculated on the basis of income and the total value of the loans taken out. Support will also be given if the interest rate increases by three percentage points in relation to the Euribor at the time the contract is signed. Families with financial assets exceeding 29,786 euros are excluded.

For example: a family in the third income bracket, with a bank payment of 726 euros per month, has an effort rate of 52%. In this case, the Euribor will also increase from 0.25% to 3.7%. It will then be supported by 61 euros per month, up to a maximum of 720 euros per year.

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The government does not know the number of people who will be covered by this support, the banks will make this communication and the amount will be credited to the taxpayer’s account. But Deco Proteste believes that this support will not reach a quarter of the housing credit contracts.

Rules for rent support

As far as rents are concerned, the support can go up to 200 euros per month for contracts signed by March 15 of this year. But there are also rules of access:

Only families up to the 6th class will receive the aid.
Households will have to have an effort rate above 35%,
For example: a couple with two dependent children, with an income of 2,500 euros per month and a rent of 1,200 euros, will have a high effort rate. They will therefore receive the maximum benefit, which will be 200 euros per month. On the other hand, a single parent family with one child, with an income of 1,500 euros and a rent of 750 euros, will receive 175 euros per month.

Old leases frozen for good

Approximately 150,000 rental contracts will be covered by this measure. Both benefits will be paid from June, with retroactive effect from January.

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