Latest news and stories about mortgage guarantee in Portugal for expats and residents.
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A guarantee scheme covers over 42% of housing loan contracts taken out by young borrowers in 2025.
More than 42% of loans for purchasing a home by young people aged up to 35 in 2025 were made under the public guarantee for first-time home financing, according to data released today by the Bank of Portugal (BdP).
A year ago, when the Government created the public guarantee to make it easier for young people to buy a home, it was unclear whether the measure would work. The figures that the Bank of Portugal published this Friday turn scepticism into an unavoidable reality: in just 12 months, the State has become the financial backer of four out of every ...
The public guarantee for mortgage loans to young people up to and including 35 applies to contracts signed up to the end of 2026 and allows the State, as guarantor, to cover up to 15% of the transaction value.
The State’s €1,550 million fund to guarantee up to 100% housing finance for young people is almost fully committed: €1,460 million (94%) has already been allocated to banks, leaving under €90 million available for future distributions. The near-exhaustion of the guarantee reduces headroom for new beneficiaries and shifts pressure onto banks and policy makers to consider whether to broaden, renew or restrict the scheme, with implications for the housing market and public finances.
