Public guarantee for young people up to 35 years old: how does it work?

In recent years, access to housing has become one of the biggest challenges for young people in Portugal. The increase in prices in the real estate market, combined with the demands of housing credit, has made it difficult for many young people to buy their first home.

In order to facilitate this access, the Portuguese Government announced a public guarantee measure aimed at young people up to 35 years old, reducing the need for equity at the time of buying a property.

But after all, how does this public guarantee work and who can benefit from it?

What is the public guarantee for home loans?

The public guarantee is a mechanism through which the State acts as a partial guarantor of housing credit granted by banking institutions.

In practice, this measure allows young buyers to be able to finance up to 100% of the value of the property, reducing or eliminating the need for an initial down payment, which usually corresponds to about 10% to 20% of the value of the house.

The State guarantee covers only a part of the financing and applies exclusively to the purchase of own and permanent housing.

Who can benefit from this measure?

The measure is aimed at young people up to the age of 35 who want to buy their first home.

In general, the main criteria include:

• age up to 35 years at the time of application
• Purchase of own and permanent housing
• compliance with the criteria defined by banking institutions for granting credit
• not owning another residential property

Each financial institution may apply additional requirements related to income, effort rate or professional stability.

What is the maximum value of the property?

The public guarantee applies to properties within certain value limits, defined by the program.

The objective is to support mainly the acquisition of housing for a first home, ensuring that the support is aimed at young people looking to enter the real estate market and not for investments or high-value properties.

The exact limits may vary according to specific regulations or legislative updates.

What advantages does this measure offer?

The main advantage of the public guarantee is that it allows young buyers to be able to acquire a house with less need for initial savings.

Among the main benefits are:

• possibility of financing up to 100% of the value of the property
• Easier access to home loans
• Reduction of the need for equity in the initial phase of the purchase

For many young people, this measure can represent an important opportunity to take the first step in buying a home.

The importance of an informed decision

Despite the facilities provided by this type of measures, the purchase of a property remains a long-term financial decision.

It is essential to evaluate factors such as financial capacity, professional stability and credit conditions before moving forward with the acquisition of a property.

Specialized follow-up can help to better understand the options available and identify the most appropriate solution for each situation.

Support in buying a house

For those looking to buy a house in Portugal, understanding the functioning of public measures and financing conditions is an important step in making informed decisions.

At Bricksy, we accompany our clients at all stages of the buying process, helping to identify the best opportunities and understand the different financial frameworks available in the real estate market.

Information note

The information presented in this article is for informational purposes only and is based on the legal framework in force at the time of its publication.

Legislation related to housing credit and public support measures, such as the public guarantee for young people, may change over time. It is therefore recommended to confirm the conditions with the competent authorities or financial institutions before any decision.