Portugal increases housing guarantee for Montepio and Novobanco

The Portuguese government has authorized a 100 million euro increase in the public guarantee line intended to assist young people in purchasing their first permanent homes. According to a dispatch published in the Diário da República, Banco Montepio will receive 60 million euros, while Novobanco will receive 40 million euros to support their projected credit operations.

This reinforcement brings the total public guarantee line, which was launched in late 2024, to 2.4 billion euros. The scheme is designed for individuals aged 18 to 35 who meet specific income and property ownership requirements. The state provides a guarantee of up to 15% of the transaction value for properties up to 450,000 euros.

While the measure aims to facilitate housing access for youth, the Banco de Portugal has previously expressed criticisms regarding the scheme. The current guarantee program is scheduled to end at the close of this year, and the government has not yet announced whether it will be extended.