There is some news about the public guarantee for young people.
One of them is that banks that sign up to the public guarantee for housing loans will have a limit on the guaranteed amount they can lend, and they may later request an increase.
The other is that after the regulation of the measure, which is yet to be concluded, banks will need another 60 days to implement it. Therefore, the public guarantee will only be in force at the end of the year or even in 2025.
According to the latest version of the ordinance, it will be up to the Minister of Finance to define the maximum amount of the public guarantee for housing loans that will be divided between the banks that sign the protocol with the State (only participating banks will be able to grant loans with a public guarantee).
However, if banks foresee the possibility of exhausting the amount initially granted, they may ask the State to increase the amount of the portfolio guarantee that was granted to them.
Now it remains to be seen when the public guarantee will be available to young people, a measure that has already been published in a decree-law since July. The initial idea was to have the regulations ready by the beginning of September. However, deadlines are slipping, and the Ministry of Finance is now in the process of adapting the legislation to the opinion sent to it by the Bank of Portugal with several warnings.
The regulations on the public guarantee are expected to be known within a few weeks. However, after the publication of the document, banks admit that they will need "approximately 60 days" to implement it, the Portuguese Banking Association told Público.
Therefore, the public guarantee should only be available at the end of the year or even at the beginning of 2025.
More and more customers are asking at bank counters about the public guarantee and how they can benefit from it when they simulate mortgage loans. And there are even cases that include property visits. With the delay in implementing the public guarantee, there is a risk that several deals will not be completed in the short term.
When it presented the public guarantee measure, the Government (PSD/CDS-PP) said that the intention is for the State to guarantee up to 15% of the purchase value of the property (acting as a guarantor in this proportion), creating conditions for young people to be able to access a loan of up to 100% of the value of the house.
According to the decree-law, the guarantee is intended for people between 18 and 35 years of age (inclusive), resident in Portugal, with regularized status with the Tax Authorities and Social Security, with income up to the 8th bracket (81,199 euros of annual taxable income), and who are buying their first permanent home whose value does not exceed 450 thousand euros.
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Source: Idealista
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