If you’re over 40, have a stable income, and the bank turns you down for a mortgage, there’s a new option. The Catalan Government has announced three new housing measures designed to make it easier for people who have difficulty paying the full purchase price to buy a home: the joint purchase program, the approval of loans to help young people become independent, and an emergency anti-eviction fund.
Joint Purchase: How Much You Contribute and for How Long
The Joint Purchase program, with a budget of 100 million euros, is primarily aimed at people over 40 with stable incomes who are unable to finance a home at market price (whether because they cannot qualify for a mortgage or for any other reason).
The conditions depend on the applicant’s age:
- If you are between 40 and 55 years old: you contribute 50% of the total price and use the property for 50 years.
- If you’re over 56: you contribute 40% of the total price and use it for 40 years.
At the end of the term, the apartment returns to the public housing stock for another family. You can sell the apartment for the remaining term without asking for permission or pass it on as an inheritance, but if you sell it, the Generalitat has the right of first refusal to repurchase it. You can also buy out the Generalitat’s share at any time: the apartment then becomes privately owned but will remain public housing forever.
Changes to Loans to Help Young Adults Become Independent
A year ago, the Generalitat approved a package of measures that included loans to help young people pay their down payments. This measure has reached more than 2,700 young people and has resulted in the signing of more than 1,800 loans.
From now on, these funds will also be available to purchase affordable housing and to pay for repairs necessary to obtain a certificate of occupancy. The terms will be adjusted according to prices in each area. The loan covers the 20% that the bank does not finance, up to 50,000 euros, at 0% interest and with no fees. In addition, you do not begin repaying it until the mortgage ends, and you then have five years to do so.
In exchange, the apartment is registered as affordable housing permanently. It must be your primary residence, and you may only resell it at the purchase price plus the CPI and the cost of any renovations. To qualify for the loans to help young people become independent, you must meet the following requirements: be between 18 and 40 years old, be registered as a resident in Catalonia, and not own any other home.
Emergency Fund to Prevent Evictions
The third measure is the Emergency Housing Fund, with 25 million euros, which can be expanded with contributions from other government agencies, banks, and insurance companies. It will be activated only after mediation, social rental housing, and the emergency task force have been exhausted. At that point, the Generalitat will be able to purchase the home and manage the rental so that the family in a situation of extreme vulnerability does not have to leave.
