Madrid: Mortgage availability up to 95% of property value

The Community of Madrid has opened a second offer for applications to “My First Home”, a program that helps young people under 35 years of age by facilitating mortgages of up to 95% for a first property.

The My First Home program aims to support prospective young buyers who lack sufficient savings to purchase their first home. It provides access to generous limits on mortgage borrowing, including where finance is required for more than 80% of the property’s value (this figure being the lower of the appraisal value or the sale price of the home).

What requirements must be met by applicants?
a) Be of legal age and not exceed 35 years old at the time of submitting the financing application to the lending institution.
b) Possess and prove legal residence in the Community of Madrid, continuously and uninterruptedly, during the two years immediately preceding the date of submitting the application.
c) It must be the first purchase of a home.

What characteristics must the home have?
a) It must be located in the territory of the Community of Madrid and be intended for the habitual and permanent residence of the recipient for at least two years from the date of acquisition.
b) The purchase price of the home, excluding expenses and taxes inherent to the acquisition, must be equal to or less than €390,000.

What documentation needs to be presented?
a) Document proving identity.
b) Certificate from the municipal register stating registration and seniority.
c) Negative cadastral certificate and confirmation from the index service of the property registry for the individual(s) acquiring the home, proving that an existing residential property is not already owned.
d) Deposit contract or pre-agreement certifying the commitment to purchase the property.
e) A declaration by the applicant with a commitment that the home will be used for habitual and permanent residence for at least two years from the acquisition.

What commitments are made?
a) That the property will be used as a home for habitual and permanent residence for at least two years from the date of acquisition. The General Directorate responsible for housing may request the buyer’s residence or registration certificate as verification.
b) That any variations in the conditions considered during the mortgage application process will be communicated to the lending institution whenever they affect the conditions of this program.

Should you have any inquiries regarding the content of this article, or any other questions relating to mortgages in Spain, please do not hesitate to reach out to us for further information.

Patricia Nadal: