Public guarantee in housing credit depends directly on the financed amount.

State guarantee only covers 15% of mortgage when bank finances 100%.

According to the General Directorate of Treasury and Finance (DGTF) - it is read on the News at the Minute - the maximum guarantee of 15% is only granted when the bank covers the entire transaction value.

In an official document, DGTF clarifies that the State guarantee can reach up to 15% of the transaction value, but it will be adjusted proportionally when the bank finances less than 100% of the total amount.

To illustrate these conditions, the DGTF presents an explanatory chart showing how the guarantee varies according to the bank's financing level:

• When the bank finances 100% of the property value, the guarantee covers 15% of that value.

• If the bank finances 95% of the value, the collateral is adjusted to 10%.

• For 90% financing, the guarantee is 5%.

• When funding is at 87%, the guarantee decreases to 2%.

• If the bank finances only 85% or 86%, the public guarantee is limited to 1%.  

According to calculations made by Lusa, disclosed in the news, in a property valued at 200 thousand euros, financed at 100%, the public guarantee would be 30 thousand euros (15%). In the same property, if the bank finances only 90% (180 thousand euros), the guarantee is reduced to 10 thousand euros (5%). If the financing is 85% (170 thousand euros), the guarantee covers only two thousand euros (1%).

The value that banks are willing to finance depends on the property evaluation and clients' financial capacity, specifically their income and debt-to-income ratio.

Know: What is the difference between the acquisition value and the appraisal value of a property?

What are the access requirements for the measure?

This measure, launched by the Government in July, was created to facilitate access for young people up to 35 years old to the purchase of their own permanent home, especially in a housing crisis context. At the same time, IMT and Stamp Duty exemptions for first home purchases by young people up to 35 years old have been in effect since August.

To benefit from the public guarantee, it is necessary:  

• To be acquiring the first own and permanent residence;  

• The property does not have a value greater than 450,000 euros.

• The buyer cannot own another residential property.

• The annual income of the household should not exceed the 8th IRS bracket (approximately 81 thousand euros of taxable income).

The measure applies to contracts signed by the end of 2026 and allows the State to act as guarantor, covering up to 15% of the transaction value.

Read more about the measure: 100% financing in housing credit for young people: How does it work?

Are you young and want to buy a house by accessing public guarantee? Let the credit intermediaries from Poupança no Minuto clear all your doubts and take care of the entire process for you, to ensure the best proposal on the market and the most advantageous conditions for you! Simulate financing now: