Portugal's State Guarantee Scheme Funds Over 40,000 New Homes for Young Buyers

Portugal’s public guarantee programme for home‑buyers aged up to 35 years, launched in early 2025, has already financed 40,100 new houses, using 56 % of the €1.146 billion budget allocated for the scheme. Between April and June 2026, 7,800 mortgage contracts were signed under the guarantee, amounting to €1.7 billion – representing 51.3 % of all young‑buyer mortgage contracts and 53.5 % of the total loan value for that segment. The guarantee covers up to 15 % of a property’s price, allowing banks to fund 85‑100 % of the purchase price, with a maximum loan of €450 000.

Millennium BCP chief executive Miguel Maya said the new macro‑prudential rules from the Bank of Portugal could reduce overall mortgage credit by about 5 %, but stressed that the guarantee remains a crucial tool for young families lacking a 10 % down‑payment. He noted that the main constraint in the market is still the shortage of housing supply, not credit availability.