Keys to request the government guarantee of 20% of the mortgage

2023-06-08 08:08:05

Last May the Council of Ministers gave the green light to create a line of guarantees from the ICO that covers up to 20% of the mortgage loan of families with dependent children y young people up to 35 years old, and to finance the promotion of some 43,000 affordable public rental homes with 4,000 million euros from European funds. Let’s see what are the keys to request the Government guarantee of 20% of the mortgage:

1. He individual income limit for the granting of ICO guarantees of 20% of the mortgage will be less than 4.5 times the Public Indicator of Multiple Effects Income (Iprem), 37,800 euros gross per year.

2. The Government estimates that this measure reach about 50,000 beneficiariesunder 35 years of age and families with dependent minors (in this case there is no age limit).

3. This guarantee will be 20% and may reach 25% if the home has a minimum energy rating D. In addition, there will be no cost for the applicant and they can be requested until December 31, 2025, with the possibility of extending it for two more years.

4. The requirement to request it, in the case of a single person, will be to have an income of less than 4.5 times the IPREM. In the case of a couple, the limit will be double (75,600 euros per year), while families with minors will see that limit increase by 0.3% for each child, 2,520 euros gross per year more. For single-parent families, the income limit may be increased by 70%.

5. Also, the loan may not exceed 100% of the value of the propertythe time limit in which the ICO guarantee will work will be valid for a maximum of ten years and limits will be established for the sale price or home appraisal depending on its location.

Help for the young

In summary, the new help from the Government in the purchase of housing is aimed, especially at young people, so that they have the opportunity to buy their own home. As they explain from Araxes Real Estate, the announcement of this aid has led more young people to be interested in different properties; some begin to value homes that are somewhat more expensive than they had thought and others, who had not contemplated the possible purchase and their option was to rent, feel attracted by this new opportunity.

Definitely, anyone under 35 years of age or those who have minors in their careWith this guarantee from the Government, they will be able to buy a home despite not having large savings, that is; the important thing will be to have the minimum money for expenses notary, registration, and ITP (Patrimonial Transfer Tax).

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