Multitude of young individuals securing property purchases in Portugal
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National banks in Portugal are furnishing hefty loans, thanks to €1 billion in state guarantees.
According to data from Jornal de Negócios, some of the key players in this loan frenzy include Santander, who's already approved loans worth €206 million and is currently considering requests valued at €635 million. BPI, on the other hand, has already dished out more than €150 million in credit and has received over 3,800 requests. Millennium BCP has received 3,250 credit requests worth an staggering €600 million. At the time, the bank had approved or was on the brink of finalizing 461 contracts worth €88 million.
CGD has contracted 861 loans under this arrangement after receiving 3,376 requests, totaling €623 million. Novo Banco registered 1,100 requests, corresponding to €170 million in real estate credit at the beginning of February.
It's all about making home ownership more achievable, especially for the youth. These banks – Santander, BPI, Millennium BCP, CGD, and Novo Banco – are primarily dealing with state-backed mortgage guarantees. These guarantees, offered by the Portuguese government, help facilitate homeownership, particularly for young adults, by covering up to 15% of the property value, enabling 100% mortgage loans for eligible applicants aged 18 to 35, living in Portugal, and with income below a specified IRS bracket.
Although precise loan figures per bank aren't publicly disclosed, it's clear that the public-guaranteed loan scheme is making a tangible impact, with over 42,000 young buyers taking advantage of this initiative as of mid-2025. Other government housing support measures, such as exemptions on land registry fees for first-time buyers and rental subsidies, are also part of the broader strategy to promote homeownership.
In essence, this loan program is transforming the lives of young buyers, dispersed among Santander, BPI, Millennium BCP, CGD, and Novo Banco. However, comprehensive figures for total approved versus pending loans across these banks are not publicly available at this time.
The loan program, backed by €1 billion in state guarantees, is primarily facilitated by banks such as Santander, BPI, Millennium BCP, CGD, and Novo Banco. By offering mortgage guarantees, the Portuguese government aims to make homeownership more accessible for young adults, particularly those aged 18 to 35 with income below a specific IRS bracket. In mid-2025, over 42,000 young buyers have taken advantage of this initiative, also benefiting from other housing support measures like rental subsidies and exemptions on land registry fees. Despite the absence of precise loan figures per bank, it's evident that this scheme is significantly impacting the real estate sector.
