Spain approves a new line of guarantees from the Official Credit Institute (ICO) of €2,500M to help young people under 35 years of age and families with dependent children without age limit with an individual income of up to €37,800 per year to pay the down payment on their first home.
The guaranteeable loan may be up to 100% of the lower value between the assessment and the purchase price of the home. The term of the guarantee will be 10 years.
This is good news, although very limited in scope. It will facilitate access to a first home, although the amount will only make it possible to guarantee between 2% and 10% of the housing transactions signed in Spain in a year, depending on the percentage of purchase guaranteed (between 100% and 20%, respectively), according to Bankinter analysts.
Moreover, it does not alleviate the high stress rates, which we estimate to exceed 40% in the face of the sharp rise in Euribor. We therefore maintain our downward house price forecast (-5% between 2023 and 2024).