Spanish Government eases mortgage guarantee rules for young homebuyers

The Spanish government has amended the ICO guarantee scheme for first‑home purchases after the programme fell far short of its targets. By the end of 2025 only 10,453 operations had been guaranteed, covering about €255.8 million of the €2.5 billion allocated – roughly 10% of the funds – and far below the aim of assisting more than 50,000 borrowers.

The amendment, published in the Official State Gazette, introduces three main changes: the deadline for formalising loans is extended to 31 December 2027; the maximum net‑wealth limit for applicants rises from €100,000 to €150,000; and the income thresholds are no longer fixed at €37,800 per year, allowing a higher ceiling that can be adjusted according to regional house prices. The programme, originally intended for people up to 35 years old and families with children, enables mortgages to cover up to 100 % of the property value, compared with the typical 80 % offered by banks.

The government hopes the relaxed conditions will boost uptake and help solvable young people and families who lack the 20 % down‑payment usually required.