The government has launched a new programme to make it easier for first-time buyers to purchase a home. With 20 million euros in guarantees, young people under the age of 45 are to receive loans of up to 95 % of the property price. This support should enable the purchase of around a thousand properties.
The President of the Generalitat announced the programme of the Valencian Financial Institute (IVF), which facilitates access to mortgage loans for young buyers. He emphasised that the guarantee is free of charge for applicants and cooperating banks and that more funds can be made available if demand increases.
The initiative aims to make it easier for young people to make the often challenging down payment of at least 20 % of the property price. The President explained that numerous homes, both new and second-hand, can be purchased through this measure. The maximum purchase price of the properties is 277,000 euros.
The event to present the programme was attended by high-ranking government representatives and representatives of the participating financial institutions. These included the Vice-President and Councillor for Social Affairs, Equality and Housing and the Councillor for Finance, Economy and Public Administration. The participating banks included Caixabank, Santander and Abanca.
Interested young people must contact one of these financial institutions to apply for a mortgage loan. Once the loan has been pre-approved, the application for the guarantee is submitted via
submitted to the electronic centre of the IVF. The purchased flats must be intended for the usual place of residence.
Compared to other programmes, such as the Instituto de Crédito Oficial (ICO), the IVF programme offers several advantages. It is not income-dependent and is open to people up to the age of 45, in contrast to the ICO's maximum age of 35. In addition, the maximum property price is higher under the IVF programme.
The President emphasised that this measure will further advance the legislative period for housing with effective and realistic solutions. The aim is to facilitate access to housing, stimulate the property market, create jobs and offer young people the opportunity to settle in the community.
He emphasised that these guarantees complement the Plan Vive, which provides for the construction of 10,000 new affordable homes. More than 100 municipalities in the Autonomous Community of Valencia have already signed up to this plan.
In addition to reducing the property transfer tax for young buyers under the age of 35 from €8 % to €6 %, which has saved an average of €1,400 per buyer in the first five months of the year, the government is extending the Bono Joven 2023-2024 by €6 million to support 2,000 more beneficiaries and a total of 6,000 tenants, offering further measures to tackle the housing problem.
