This measure can be especially important for young people who want to buy a home but are having trouble saving up the necessary down payment.
What Is the Public Guarantee?
The Public Guarantee for Mortgage Loans allows the government to act as a guarantor for a portion of the financing, potentially enabling financing of up to 100% of the transaction value.
In practice, the guarantee can cover up to 15% of the initially contracted principal, allowing the bank to finance between 85% and 100% of the transaction value.
The Public Guarantee does not mean that the government pays for your home. The loan is granted by the bank, and you remain responsible for repaying the entire loan.
Who is eligible?
- Young people between the ages of 18 and 35
- Tax residence in Portugal
- Purchasing their first permanent home
- Not owning any other residential property
- Must not have previously benefited from the Public Guarantee
- Income must fall within the established limit, corresponding to the 8th IRS tax bracket
- The property’s transaction value cannot exceed €450,000
- Tax and social security obligations must be up to date
In addition, all buyers must be mortgage borrowers and meet the program’s requirements.
How long can I use the Public Guarantee?
The program applies to mortgage contracts signed through December 31, 2026.
Therefore, if you are 35 years old or younger and a lack of savings for a down payment is delaying your home purchase, it may be important to start preparing the process in advance.
What about the other benefits of the Youth Mortgage Program?
Even with the planned end of the Public Guarantee, the tax benefits associated with the IMT and Stamp Tax exemptions remain in effect, provided you meet the applicable legal conditions.
What’s the difference?
- Public Guarantee—can help finance up to 100% of the transaction value.
- Youth Property Transfer Tax (IMT) Exemption—can reduce or eliminate the Property Transfer Tax (IMT) and Stamp Tax when buying your first home.
These are different measures, but they can be particularly relevant for first-time homebuyers.
Are you thinking about buying a home?
If you’re 35 or younger, don’t have enough savings for a down payment, and meet the requirements, 2026 may be an opportunity to explore eligibility for the Public Guarantee before the measure’s scheduled expiration.
Run a mortgage simulation to see how much you can finance and what financial assistance you may be eligible for.