The dream of many young people is to own their own home, but they often find it difficult to access a mortgage due to their lack of credit history or stable income, as well as the prices of the properties themselves, which have grown exponentially in recent years, fortunately for them, the government approved the State Plan for access to housing, which is a Grants for mortgages for young people at the young population so that they can have access to decent and adequate housing.
REQUIREMENTS FOR GRANTS FOR MORTGAGES FOR YOUNG PEOPLE
As we have already mentioned, this State aid is intended for access to housing. However, all those who wish to apply for it must meet certain requirements in order to be able to access it.
The beneficiaries must be residents in Spain, young adults up to 35 years of age and must use the property as their habitual and permanent home. They may not own another home in Spain.
In relation to the maximum income of the interested parties, they will be established according to the IPREM (Indicador Público de Renta en Efectos Múltiples), which are, as of 2023, €20 per day, €600 per month and around €7,200 per annum divided into 12 payments, and €8,400 per year in 14 payments.
Therefore, looking at these indicators, the programme establishes, in general, that applicants should not exceed an amount similar to three times the IPREM, which, translated into figures, would be around €25,200.00 per year spread over 14 payments. In the case of large families and people with disabilities, the income limit is set at four times the IPREM, i.e. €33,600.00 per year with 14 payments. Finally, special large families and people with certain degrees of disability must have an income of less than €42,000.00 per year, established in 14 payments, which is equivalent to 5 times the IPREM.
As for the purchase of the house, the Government establishes this aid for properties whose purchase price is less than €100,000, not counting the expenses and taxes associated with the real estate transaction, and which are located in municipalities of less than 5,000 inhabitants.
AMOUNT OF MORTGAGE AID FOR YOUNG PEOPLE
Once the aforementioned requirements are met, the State offers financial assistance for the mortgage for young people through ICO (Official Credit Institute) loans. The Government establishes an amount of up to a maximum of 10,800 € and not exceeding 20% of the purchase price for homes of less than 100,000 €. These loans can be applied for directly through any of the banks that collaborate with the Spanish government, which can be consulted on the ICO website. The application period is three months, counting from the date of notification of the resolution granting the aid itself, and the public deed or purchase contract accrediting the acquisition of the property must be submitted.
RENTING, AN ALTERNATIVE TO MORTGAGES FOR YOUNG PEOPLE
In the event that a mortgage is not feasible for young people, even with government aid, renting is the quickest and most affordable way to access housing. Like the mortgage assistance for young people, the State also offers this same assistance, but on a rental basis, as long as the beneficiaries who apply for it meet the same requirements as before. However, the amount of the aid is different, being 50% of the quota for rents of 600 € per month, and 30% if the cost is between 601 and 900 € per month.
Accessing a home as a first-time buyer may seem a challenge, but, in addition to certain facilities offered by banks, with grants for mortgages for young people and government subsidies, it is more feasible than it may seem at first. If you still don’t have the necessary resources, then renting a rented property is the best option for becoming independent. For this it is very important, in addition to saving and taking advantage of the opportunities available on the market, to be aware of government housing programmes. From 1 Mast we help you find your ideal home