The Government will guarantee up to 20% of the purchase of first home

The Balearic Government has signed with CaixaBank, Caixa Colonya and Cajamar the launch of the IBAVI Mortgage Guarantee Programme, which guarantees 20% of the purchase of a first home as of Monday. It refers to homes that do not exceed 270,151 euros and the maximum annual income is 57,117 euros if it is one person, or 64,257 if there are two or more

Francina Armengol, President of the Govern balear, together with the Councillor for Mobility and Housing, Josep Marí, and the Councillor for Finance and External Relations, Rosario Sánchez, this morning attended the signing of the collaboration agreements between the IBAVI and CaixaBank, Caixa Colonya and Cajamar for the implementation of the IBAVI Mortgage Guarantee Programme. An agreement has also been signed with the Chamber of Commerce of Mallorca as a collaborating entity of the IBAVI in the management and control of the guarantees.

Characteristics of the programme

The aim of the IBAVI Mortgage Guarantee Programme is to make it easier for the citizens of the Balearic Islands to buy a home. Govern balear, through IBAVI, will grant a guarantee of up to 20% of the purchase price of the first home. The granting of this guarantee will be conditional on the granting of the mortgage loan by the financial institution, which will have to finance over 80 % and up to a maximum of 100 % of the purchase value of the home – depending on the regulations and the regime applicable to each institution.

Habitual residence of at least 5 years in the Balearic Islands

The property must be located in the Balearic Islands, must be destined for habitual and permanent residence and must have a price equal to or less than €270,151.20, including annexes -parking, storage room or other- and excluding acquisition costs and taxes.

The beneficiary must have a continuous or discontinuous residence of at least 5 years in the Balearic Islands. They must have Spanish or European Union nationality, or legal residence in Spain. They cannot be the owner or usufructuary of another home in Spanish territory, with some exceptions, and their annual income – calculated according to the IRPF taxable base – must be less than €57,117, in the case of one person, or €64,257 in the case of two or more people.

Steps to follow

Now, once the agreement has been signed, the financial institutions and the Chamber of Commerce of Mallorca will work together to disseminate information about the programme to all the branches of the member institutions, train their staff and implement this new product.

• Those interested can then go to the financial institutions that are members of the IBAVI Mortgage Guarantee Programme, where they can present the documentation for the study and assessment of their case.
• This documentation will then be sent to the Chamber of Commerce of Mallorca, as a collaborating entity, for verification and data analysis. The IBAVI will finally notify the applicant of the resolution. And once the favourable resolution has been obtained, the public deed and the counter-guarantee policy will be signed before a notary.
• Applications may be submitted until the programme’s budget of 15 million euros is exhausted, or until 31 December 2024 at the latest.