It is clear to everyone that finding an apartment in Madrid is no easy task. It is also clear that young people are the ones who usually have the most difficulty in doing so. The Mi Primera Vivienda Madrid plan seeks to alleviate part of this problem.
With an investment of 18 million euros, this ambitious plan will help young people under 35 with their mortgage so that they can become independent.
What is the My First Home Madrid plan?
The My First Home plan is part of the Strategy for the Protection of Maternity and Paternity and the Promotion of Births and Reconciliation of the Community of Madrid for the period 2022-26.
The strategy has a budget of 4.8 billion euros and includes different actions. This plan specifically seeks to ensure that people under 35 who do not own a home can access one and become independent, even if they do not have savings.
And how does it do this? We will explain everything in the following lines.
What you can get with this plan
My First Home will support those under 35 years of age who want to buy a house and do not have the savings to do so and to obtain a mortgage.
The amount to be guaranteed will be between 80% and 95% of the value of the property , the price of which may not exceed 390,000 euros.
Thanks to this guarantee, young people interested in purchasing a home throughout the Madrid region will be able to become homeowners by contributing less savings than would normally be required as a down payment. It is not a 100% mortgage, but it is close to it in terms of the percentage of the house that can be financed .
Requirements to apply for aid
What conditions must be met to access Mi Primera Vivienda in the Community of Madrid? These are the main requirements:
· Not having turned 36 years old at the time of submitting the mortgage application to the bank.
· Be a resident of the Community of Madrid and have been so for the previous two years.
· The house must be the buyer's primary residence and also be the habitual residence. In other words, it is not suitable for second homes. In addition, the buyer must live in the house for at least two years after the purchase.
· Not owning another property in Spain. For these purposes, those who own less than 50% of a property received by inheritance or those who, having a house, cannot use it because they have not been awarded its use after the divorce, are not considered owners.
· Have sufficient financial solvency (that is, you can pay the mortgage based on the requirements that financial institutions traditionally review )
· Have at least 5% of the price of the home saved (95% can be guaranteed by the My First Home plan).
· Have savings to cover the taxes and expenses for the purchase of the house. In practical terms, this means an additional 10% to 12% of the price of the house.
Characteristics of the home you want to buy
The property you are going to buy must also meet certain requirements. After all, it does not make much sense to get help if what you want to buy is a villa in La Moraleja.
These are the conditions of the house:
· It must be located in the Community of Madrid, of course.
· It must be used as a habitual residence and inhabited for a minimum period of two years from the date of purchase.
· Its price must be less than 390,000 euros, excluding expenses and taxes.
How to apply for My First Home in Madrid
To qualify for this plan, you must go to the offices of one of the three financial institutions that won the community's public tender, which involved having a network of branches in all towns in Madrid with more than 50,000 inhabitants.
These entities are: Banco Santander , Caixabank , through Imagin and Ibercaja .
When submitting the application, it will be necessary to attach the municipal registration certificate, the negative cadastral certificate and a simple note from the Property Registry, the deposit contract or pre-agreement, a responsible declaration that the house will be used as a habitual residence and the rest of the documentation that the bank needs for the mortgage.
Deadlines for requesting aid
Applications for this program opened in October 2022.
This initiative hopes to facilitate access to housing for young people. If you cannot access it because you are over 35 years old or because the value of the home you are looking for is higher, you can resort to the traditional route and find a mortgage adapted to your needs.
