Young people represented 54% of new home loans in August.

In August, more than half of the new mortgage contracts were held by young people.

In August, individuals up to 35 years old represented 54% of new housing loans, marking the first month since January where the majority of financing focused on this age group.

According to data from the Bank of Portugal (BdP), as seen in the News Minute, young people up to 35 years old represented an average of 41% of new contracts for housing credit during the first semester.

In July, this percentage dropped to 30%, rising again to 54% in August, the month in which young people up to 35 years old began to benefit from partial or total exemption of the Municipal Property Transfer Tax (IMT) and the Stamp Duty (IS) when purchasing their first home.

Although the Bank of Portugal has not disclosed the average amount of loans by age group, the trend confirms real estate market signals: many young people have postponed buying to take advantage of tax exemptions, which encouraged property acquisition among this audience.

The impact of young people on the purchase of their own homes continued in September, when they accounted for half of the new credits granted for this purpose.

It is worth mentioning that this data refers exclusively to new housing credit contracts, excluding renegotiations, consolidations, and credit transfers between banks.

According to the Ministry of Youth and Modernization, in the first 45 days of the IMT Young program (from August 1 to September 18), 3,098 young people benefited from the measure, resulting in the purchase of 2,141 houses.

This measure exempts young people up to 35 years old from paying IMT and Stamp Duty when buying their first own and permanent home, with total exemption for properties up to 316,772 euros and partial exemption for values up to 633,453 euros. These limits will be updated in 2025, according to the State Budget.

Looking to buy a house with the new measure in force? Credit intermediaries from Poupança no Minuto can help with the entire process and save you from all the boring parts! Save yourself and already simulate your new housing credit, to find the best market proposal for you: