Mortgage credit. Interest subsidy in five questions and answers – Markets

Who can apply for the interest subsidy on mortgage loans?
The subsidy is intended for families with housing loans of up to 250,000 euros, concluded by March 15, 2023, and who have an effort rate equal to or greater than 35% of their annual income with the value of the annual credit installments. The subsidy also takes into account the income of families and is only available to families with income up to the sixth IRS scale (up to 33,632 euros of taxable income).

Up to what amount can this bonus reach?
This support has a maximum annual limit of 1.5 Social Support Index (IAS), that is, 720.60 euros, for each credit agreement. The subsidy can go up to 75% of the value of the mortgage payment, but depends on the families’ annual income. For families whose income does not exceed the fourth IRS scale (20,700 euros), the bonus percentage is 75%. Families with incomes corresponding to the fifth and sixth income brackets (between 20,700 and 38,632 euros) will receive a 50% bonus.

How can families apply for this support?
To access this subsidy, families must submit their membership application to banks and other creditors, using “the channels that they make available for this purpose”, according to the Ministry of Finance. After receiving the complete application, institutions have 10 working days to notify applicants if they meet the conditions for access to this support. If the application is denied, banks must expressly indicate the reasons for ineligibility. How will this support be paid?
Regardless of the date of order, the first bonus payment will be paid retroactively to January, taking into account the months of 2023 in which the eligibility requirements were met. Measure applies to credit contracts for “acquisition, construction or work on own and permanent housing that have been contracted at a variable rate or which, having been contracts with a mixed rate, are in the variable rate period”.

Until when will it be available?
The interest subsidy on mortgage loans will be in effect until the end of the year, but the Government admits that it could be extended if interest rates do not in the meantime reverse their upward trend.

Source: Jornal de Negócios by

*The article has been translated based on the content of Jornal de Negócios by If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!