The regional Executive gives the final green light to the decree that will allow young people and large families to access a mortgage of up to 95% of the value of their first home. The next step will be signing the agreement with the banks.
The Canary Government Council has given the final approval this Thursday to the decree regulating the Young Canary Mortgage Programme, one of the regional Executive's flagship measures to facilitate access to housing. The initiative, promoted by the Ministry of Public Works, Housing and Mobility led by Pablo Rodríguez, will allow young people aged between 18 and 40, as well as large and single-parent families, to finance up to 95% of the purchase price of their first permanent residence.
Requirements and conditions of the programme
To benefit from this public mortgage, applicants must prove legal and continuous residence in the Canary Islands for the two years prior to the application. Additionally, they must not own another home, except for exceptions outlined in the regulation, and the property acquired must be used as a permanent residence for at least two years.
The applicant's net worth limit must not exceed 150,000 euros, while annual income must not exceed five times the IPREM (Public Indicator of Multiple Effects Income). In the case of joint acquisition by two people, the limit doubles, and an additional 0.3 times the IPREM is added for each dependent child. Single-parent families will see this cap increased by 70%.
The homes included in the programme must be located in the archipelago and have a maximum price of 250,000 euros, excluding taxes and associated costs. Both new and used homes, whether free or protected from private promotion, are accepted.
Next steps: agreement with the banks
With the approval of the decree, the Ministry of Housing will now initiate the processing of the framework agreement to which financial entities interested in participating can adhere. This agreement will be formalised through an order from the minister and will require the necessary reports from Canary Islands regulations. Once the administrative process is completed, banks will be able to sign their adherence and start offering these mortgages to citizens.
Minister Pablo Rodríguez has highlighted that this measure is part of a comprehensive strategy by the Government to improve access to housing, which also includes streamlining urban planning licenses, reforming the system for awarding protected housing, and various lines of assistance for rental and purchase for young people.
A response to the housing problem in the islands
Access to housing has become one of the main social challenges in the Canary Islands, where prices have soared in recent years, especially in tourist areas and capitals. With this public mortgage, the Executive aims to facilitate the emancipation of young people and alleviate the pressure on families with fewer resources.
This measure adds to other initiatives such as the emergency housing decree law, which seeks to accelerate land availability, and direct subsidies for home purchases aimed at young people. The goal, according to the Government, is to offer real solutions to a problem affecting thousands of Canarians.
For those interested, it is recommended to stay alert to the official publication of the framework agreement and the deadlines for financial entities' adherence, which will determine when these mortgages can be applied for. In the meantime, the requirements are already set, allowing potential beneficiaries to prepare the necessary documentation.
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