May 9, 2023 marked a significant milestone for young people and families with dependents who aspire to the dream of owning their own home. In a momentous decision, the Council of Ministers, in collaboration with the Ministry of Transport, Mobility, and Urban Agenda (Mitma) and the Official Credit Institute (ICO), has approved the granting of 20% guarantees for mortgages for the purchase of the first habitual residence.<\/p>\n
This measure, which is part of a set of actions aimed at facilitating access to housing, aims to partially cover the mortgage of the habitual residence for individuals up to 35 years old and families with dependents, regardless of age. But what are the implications of this new government provision?<\/p>\n
Who can access these guarantees?<\/strong><\/p>\n The guarantees are aimed at individuals up to 35 years old and families with dependents, without age limit, whose individual incomes do not exceed \u20ac37,800 gross per year. It is important to highlight that if the property is acquired by two people, the income limit is doubled, but in no case can the sum of the incomes of both acquirers exceed the limit established for each one.<\/p>\n Additionally, this measure includes improvements based on the number of children and whether the family is single-parent. For each dependent child, the income limit increases by 0.3 times the IPREM (Public Indicator of Multiple Effects Income), approximately \u20ac2,520 gross per year. In the case of single-parent families, this limit can increase by an additional 70%.<\/p>\n Details of the guarantee line<\/strong><\/p>\n Mitma and ICO will be responsible for implementing and managing this line of guarantees, which will be available to financial entities operating in the ICO’s Mediation Lines. Potential beneficiaries can apply for the guarantee through these entities, within the framework of the Mitma-ICO Line.<\/p>\n The period for formalizing mortgages under this guarantee line will end on December 31, 2025, with the possibility of a two-year extension depending on demand and economic circumstances. The loan to be guaranteed may cover up to 100% of the lower of the appraisal value and the purchase price of the property, with the cost of the guarantee provided by Mitma borne by the credit institution.<\/p>\n Furthermore, Mitma may share up to 20% of the risk of the total principal of each mortgage with the credit institution, on equal terms. This percentage could increase to 25% if the property to be acquired has a minimum energy rating of D or higher.<\/p>\n The term of the guarantee provided by Mitma will be a maximum of 10 years, regardless of the loan repayment term and the existence or absence of a grace period.<\/p>\n In summary, this government initiative represents a significant boost for those seeking access to their first home, easing the financial burden through guarantees that facilitate access to necessary financing. With approximately 50,000 homes as the target, it is expected that this measure will have a positive impact on the real estate sector and the lives of thousands of families in Spain.<\/p>\n <\/p>\n Living Sitges Article<\/p>\n","protected":false},"excerpt":{"rendered":" May 9, 2023 marked a significant milestone for young people and families with dependents who aspire to the dream of owning their own home. In a momentous decision, the Council of Ministers, in collaboration with the Ministry of Transport, Mobility, and Urban Agenda (Mitma) and the Official Credit Institute (ICO), has approved the granting of […]<\/p>\n","protected":false},"author":1,"featured_media":2102321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[70],"class_list":["post-2102326","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-living-sitges"],"yoast_head":"\n