Bankinter 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.
Assessment: 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). 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).