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100% financing on home loans for young people: How does it work?

Young people can apply for 100% financing when buying a house with a mortgage credit, through a public guarantee measure.

30 Sep 20242 min

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What are the conditions for public guarantee when buying a house for young people, for 100% financing?

Young people can resort to 100% financing in home loans, through public guarantee to buy a house since the beginning of 2025.

Regarding the requirements, the regulations establish: It is intended for young people between 18 and 35 years old, with fiscal address in Portugal, income up to the 8th bracket of the IRS, not being able to be owners of another residential property, and for properties up to 450 thousand euros.

It should be noted that the state's public guarantee applies to 15% of the transaction value, allowing banks to finance the full value of the property. The guarantee is provided by the Directorate-General of the Treasury and Finance (DGTF) to the banks.

Young people who join the guarantee can benefit from it for 10 years, starting from the signing of the credit contract, extinguishing the borrower's obligations that were fulfilled before that deadline. Note that if the credit is partially or fully paid off, the guarantee is also reduced in the same proportion.

In other words, if default occurs, the State can also be called upon to pay up to 15% of the outstanding capital, which will then be subrogated in the bank's rights to recover the amount from the borrower.

Despite this measure circumventing the macroprudential measure of the Banco de Portugal regarding the maximum financing limit of 90% for the acquisition of own and permanent housing (the lowest between the acquisition value or appraisal), the banks still have to follow the other rules.

For example, they must continue to respect the limit of the debt service-to-income ratio, which determines that the set of credit installments must not exceed 50% of the borrower's net income, unless an exception is made.

Do you want to start your housing credit process, using current support measures? Turn to a credit intermediary at no cost, such as "Poupança no Minuto", who takes care of everything for you throughout the process. Ensure the best proposal on the market and save yourself!

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Eleito Produto do Ano 2025
Poupança no minuto

Financefy S.A. Credit Intermediary registered with Banco de Portugal (Bank of Portugal) as nº 0006860

Financefy - Mediação de Seguros Lda (Insurance Mediation Ltd), registered at ASF as nº 423578365


Poupança no Minuto is a brand owned by Financefy, S.A., a linked credit intermediary registered with the Bank of Portugal under number 0006860. Services authorized to provide: Presentation or proposal of credit agreements to consumers. Assistance to consumers, through the performance of preparatory acts or other pre-contractual management work in relation to credit agreements that have not been presented or proposed by the company. Lenders: Bankinter, S.A. - Branch in Portugal, Caixa Geral De Depósitos, S.A., Banco BPIi S.A., Banco Santander Totta, S.A., Abanca Corporación Bancaria, S.A., Branch in Portugal, Banco Ctt, S.A., Novo Banco, S.A., Cofidis, BNP Paribas Personal Finance, S.A. - Branch in Portugal, Real Estate Credit Union, S.A., Credit Financial Establishment (Sole Proprietorship) - Branch in Portugal, Bni - International Business Bank (Europe), S.A., Banco Bic Português, Sa, Unicre - Credit Financial Institution, S.A.