canary islands 95 percent mortgage young buyers

Canary Islands approves 95% mortgage scheme for young buyers

New mortgage scheme approved

The Canary Islands government council approved on Monday, at the request of the regional minister for public works, housing and mobility, Pablo Rodríguez, the decree which definitively regulates the Canary Islands Young Mortgage Programme. This measure is designed to help young people aged between 18 and 40, as well as large families and single-parent families, access financing of up to 95% of the purchase price of their first permanent home, provided the property does not exceed 250,000 euros.

The decree was criticised by the opposition when it was presented, on the grounds that it fails to address the fundamental problem, which is the difficulty of accessing the housing market due to high prices, rather than the availability of finance. With this approval, the legislative process for the decree is now complete, having received a favourable opinion from the Canary Islands Consultative Council.

Part of a wider housing strategy

The measure forms part of a series of initiatives promoted by the regional ministry for public works, housing and mobility to improve access to housing and make it easier for young people to leave the family home. It complements other programmes aimed at increasing the housing supply and encouraging renovation, the regional government explained. Following the final approval of the decree, the ministry will continue the process of finalising the framework agreement which financial institutions interested in participating in the programme can sign up to.

This agreement will be approved by ministerial order and will follow the established procedure for this type of instrument, including the issuing of the mandatory reports required under Canary Islands regulations. Once the administrative process is complete, financial institutions will be able to formalise their participation in the programme.

Eligibility requirements

Among the requirements to qualify for the programme are: having legal and continuous residence in the Canary Islands for the two years prior to the application; not already owning another property (with certain exceptions); and using the property as a permanent and habitual residence for a minimum period of two years. In addition, the net assets of the applicant, or of each applicant in the case of a joint purchase, must not exceed 150,000 euros.

The income of applicants must not exceed five times the IPREM (a Spanish public income indicator used as a reference for benefits and subsidies). In the case of a joint application by two people, their combined income must not exceed the sum of the limit set for each individual. This amount will be increased by 0.3 times the IPREM for each dependent child. For single-parent families, the income limit will be increased by 70%.

As for the properties themselves, they must be located in the Canary Islands and have a maximum purchase price of 250,000 euros, excluding taxes and associated costs. The programme will cover both new and used homes, whether free-market or publicly subsidised properties built by private developers.

Housing access as a priority

Access to housing is one of the priority areas of the Canary Islands government’s work during the current legislature. To this end, the administration has launched a series of regulatory reforms, urgent measures and specific programmes aimed at increasing the housing supply, simplifying administrative procedures and improving opportunities for citizens to obtain a home.

Among the most significant actions are: the approval of the decree-law on urgent housing measures, designed to speed up the availability of land and accelerate the development of housing projects; the decree simplifying the processing of planning permissions; and the reform of the allocation rules for subsidised housing, which replaces the lottery system with a model based on objective social, economic and proven-need criteria.

At the same time, the government has strengthened its policies supporting access to housing through various grant schemes. These include subsidies for young people buying a home, the Young Mortgage Programme itself, and rental assistance, both under the general call for applications and under the specific scheme for young people.

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