Data from the Bank of Portugal (BdP) released today shows that since the beginning of the year, 478 million euros have been utilized under a regime allowing the state to guarantee up to 15% of the transaction value.
From January to September, 79,850 contracts amounting to 13.703 billion euros were made for the purchase of permanent own housing, with more than a fifth under this guarantee scheme.
By September, 17,758 contracts for permanent housing purchases by borrowers up to 35 years old were approved under this initiative, accounting for 22.2% of the total and representing 3.472 billion euros (or 25.3% of the total granted).
Among young individuals up to 35 years old, 43,797 contracts were signed, amounting to 8.113 billion euros in housing credit, indicating that contracts under the guarantee accounted for 40.5% of new credits and 42.8% of the contracted volume for this age group.
In September alone, 2,423 contracts were signed, valued at 496.9 million euros, through the public guarantee, representing 25.9% of the total contracts and 29.2% of the allocated amount.
The contracts under the guarantee also represented 47.3% of the credits contracted by young people up to 35 years old and 48.9% of the amount.
According to the BdP, in the regions of Alentejo, Beira Baixa, Lezíria do Tejo, and Terras de Trás-os-Montes, by September, more than half of the permanent own housing credit contracts signed by young people were arranged with the state’s guarantee.
Conversely, the proportion of houses purchased by young people using the guarantee was lower in Greater Lisbon and the Autonomous Region of Madeira, representing about one-third.
The public guarantee for housing credit for young people up to 35 years (inclusive) applies to contracts signed until the end of 2026 and allows the state to guarantee up to 15% of the transaction value.
Practically speaking, by combining this guarantee with existing credit rules, the measure enables young individuals to obtain 100% of the house’s appraisal value, as opposed to the 90% limit applicable to most clients.
This housing credit guarantee is available to those aged between 18 and 35 (inclusive) buying their first permanent residence with a value not exceeding 450,000 euros.
Beneficiaries cannot own an urban building or fraction of an urban building and cannot have income exceeding the eighth IRS bracket (approximately 81,000 euros in annual taxable income).
