Don't be afraid. There are dozens of pages. I will provide a brief summary here, and I will explain it later. The point to be made now is that although the decree has already been published, many details still need to be regulated by the Ministry of Finance. Therefore, you will only be able to try to access this guarantee at the end of the year. However, see if you meet the requirements.
The guarantee will only be available through banks that have signed a specific protocol with the Ministry of Finance. It's not universal.
Supporting youth is applicable throughout the national territory.
State guarantee application requirements
- Age between 18 and 35 years.
- Tax domicile in Portugal.
- Income up to the 8th IRS bracket.
- Not owning another residential property.
- The value of the deal reaches 450,000 euros.
- Designated for the first purchase of permanent housing.
- The state guarantee (max. 15) is for the entire transaction value, or a lesser amount, as long as this is equal to or greater than 85% of the above transaction value.
- You have no debts for finance and social security
This image shows the documents you will need to collect when submitting your application to the bank.
The state guarantee does not apply to construction
Credit contracts for construction or first permanent residence work, as well as financial leasing contracts, are excluded from the scope of application of this system.
Borrowers' ages are verified and the financing approval date is indicated. If you turn 36 before this date, you will no longer be eligible.
It is also clear in the law that the fact that a bank is eligible for support does not obligate the bank to agree to extend credit, especially if the effort rate condition is not met.
The verification of the eligibility requirements set forth in Paragraph 1 by the borrower(s) shall not prejudice the free decision of the institutions to grant credit or not to grant it, in particular with regard to the assessment of the effort rate of borrowers, on the basis of usual credit risk analysis, in accordance with applicable standards and guidelines. therein, including its provisionsDecree Law No. 74-A/2017dated June 23, inBank of Portugal Notice No. 4/2017September 22.
You can transfer the balance
If, after obtaining the credit, you transfer the credit to another bank, the guarantee remains in place, as long as the next bank also has a signed protocol with the state and an available ceiling for granting support.
Deadline for requesting support
To benefit from the personal guarantee granted by the state, credit contracts between institutions and borrowers must be formalized no later than December 31, 2026.
The bank may request guarantors for the remainder of the credit.
Warranty period
The State Personal Guarantee is valid for 10 years from the date of conclusion of the respective credit agreement, and expires earlier if all obligations of the borrower under the previously mentioned credit agreement are fulfilled.
When it comes into effect
The decree goes into effect on Saturday, September 28. But, as I explained at the beginning, the Ministry of Finance lacks several regulations. By contacting them, I was informed that expectations remain that everything will be up and running in the banks by the end of the year. The decree stipulates that after signing the protocol, banks still have 60 days to activate everything. It will take a few months.
Until then, start collecting documents.
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