Housing Support for Young People

Hey Millennials and Gen Z, we have news!

Do you want to buy a house with no down payment, 100% financed, and without having to pay IMT or Stamp Duty? Banco Montepio tells you how.

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If you want to move out of your parents' house, stop sharing a house with friends, or stop paying rent, now it's easier. Are you between 18 and 35 years old and need 100% financing? Go ahead with the house purchase and, if necessary, use the State's personal guarantee, where it acts as your guarantor. Do taxes take a big chunk of your budget? It doesn't have to be that way, as you can also benefit from exemptions on the Municipal Tax on Onerous Property Transfers (IMT), Stamp Duty (IS), and even on registrations.

Banco Montepio is here for you on this journey and explains everything.

State personal guarantee Exemption from IMT and Stamp Duty
Garantia pessoal do Estado

Without money for the down payment on the house?

State personal guarantee.

The solution to buy your first house, 100% financed by the bank and with the State as your guarantor.

Frequently asked questions.

What is the State personal guarantee?
It is when the State assumes the role of guarantor and will be responsible for paying the bank a part of the financed amount in case you default. This State support allows you to buy your first house without making an initial down payment, for example.
In a mortgage loan contract, how much can be covered by the State's personal guarantee?
This State guarantee cannot exceed 15% of the transaction value. However, if the bank finances less than 100%, the guarantee amount is adjusted proportionally lower.
Who can request the State's personal guarantee?
Young people between the ages of 18 and 35, with tax residency in Portugal, who want to buy their first house.
Can I take advantage of the State's guarantee to do home renovations?
No. The State's guarantee is only valid for the purchase of the first permanent residence and does not cover renovations, construction, or leasing contracts.
Until when is the State's guarantee valid?
For a maximum of 10 years, starting from the moment the contract with the bank is signed. If the obligations of the loan contract end earlier, the State's guarantee also ends.
What guarantees do I have to provide to benefit from the State's guarantee?

You must ensure the following points:

· that the financing is intended for the first purchase of a permanent residence;

· that you are not the owner of a house (urban building or autonomous fraction of a residential urban building);

· that it is the first time you are accessing the State's guarantee;

· that you have a regularized tax and contributory situation.

What documents do I need to present at the branch?

- Citizen card or equivalent, if you are not Portuguese;

- Tax domicile certificate, issued by the Tax and Customs Authority;

- Borrowers with IRS declaration: IRS settlement note, issued by the Tax and Customs Authority for the last available tax period;

- Borrowers without IRS declaration: (i) Certificate of exemption from IRS submission + social security (SS) or relevant provident entity declarations, proving the monthly income declared to SS or the relevant provident entity for the last three months; (ii) Certificate of exemption from IRS submission + SS declarations, proving the monthly amount of social benefits and their respective type;

- Property certificate, issued by the Land Registry Office and Property Booklet or Negative Property Certificate, issued by the Tax and Customs Authority;

- Declaration provided by Banco Montepio, already signed;

- Certificate of no debt, issued by the Tax and Customs Authority and Certificate of no debt, issued by social security or the relevant provident entity;

- Document stating the acquisition value of the building and CPU of the property to be acquired.

Until when can I request the guarantee?
You can do it until December 31, 2026, at one of Banco Montepio's branches.
Does requesting the State's guarantee have any cost or fee?
There is no fee charged for joining the State's guarantee.
Is there an income limit for the allocation of the guarantee?
Yes. The income cannot exceed the 8th IRS bracket. If exempt from submitting the income declaration, they must have monthly work income declared to Social Security or receive social benefits that do not exceed the monthly amount corresponding to 1/14 of the maximum limit value of the 8th IRS bracket.
To benefit from the State's personal guarantee, does the house have to comply with a certain transaction value?
Yes, the maximum transaction limit should be €450,000, with the guarantee limited to 15%.
Is it certain that the bank will grant me a loan, since I meet all the requirements for obtaining the State's guarantee?
No. You still have to pass the credit risk analysis that the bank will always have to do. Additionally, the mortgage guarantee of the property is mandatory, and the bank may even ask for other additional guarantees (such as a surety, for example).
Are subsidized mortgage loan contracts covered?
Yes, contracts under the Regime for Persons with Disabilities are also covered.
Can I have more than one contract with this guarantee?
No. You can only have one contract with this guarantee.
Can I repay the loan early?
Yes, you can make a full or partial repayment of the loan before the scheduled limit. If it is a partial repayment, then the State guarantee is reduced in the same proportion.
Can I sell the house if I have benefited from the State guarantee?
Yes, provided that the guarantee ends when the mortgage discharge is issued or with the bank's consent for the transfer of the property.
Can I transfer my mortgage from another bank to Banco Montepio and continue to benefit from the guarantee?
Banco Montepio has joined this measure, so you can transfer your mortgage and secure these benefits.
Is the State guarantee an additional guarantee for those who take out the loan?
No. Borrowers must fulfill all credit responsibilities and should not default. In case of financial difficulties, the credit agreement with the bank can be renegotiated (for example, under PARI and PERSI). The client will always be responsible for paying the bank the amount not covered by the guarantee and to the State for the amount it may pay to this bank.
Where can I perform the State guarantee simulation?
Go to one of our branches to perform the simulation or if you want more information about the State personal guarantee, you can consult the Banking Customer Portal (Portal do Cliente Bancário) where there are Frequently Asked Questions on the subject.
What happens if I default?
The State guarantee is triggered, and this triggering may occur before the execution of the clients' and guarantors' assets.

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