The public guarantee for young buyers may enable financing between 85% and 100% of the transaction value of a first primary permanent home. It is not automatic approval and does not replace the bank assessment.
What the guarantee covers
According to the Bank of Portugal, the public guarantee applies to contracts signed until 31 December 2026, for buyers up to 35 who meet the conditions, for the purchase of a first primary permanent home whose value does not exceed EUR 450,000. The guaranteed amount cannot exceed 15% of the transaction value.
How it works in financing
The aim is to allow the institution to finance between 85% and 100% of the transaction value, which corresponds to the purchase price or, if lower, the valuation. The guarantee is a State surety and may last up to 10 years after the contract is signed.
What it does not solve
Institutions are not required to grant credit even if the guarantee requirements are met. They still assess creditworthiness, debt-service ratio, income stability, existing liabilities, valuation, insurance and documentation. The guarantee may reduce the down payment, but it should not remove the household safety margin.