Housing loan interest subsidy covers all contracts

The “More housing” package has been in public consultation since the 20th of February and ends on the 10th of March

The Minister of Finance clarified this Tuesday, February 28, that the measure to subsidize mortgage interest rates will cover all credit agreements and not just those concluded after 2018.

Fernando Medina was speaking at a regimental hearing at the Budget and Finance Commission (COF), in Parliament, when he highlighted the measures taken by the Government to respond to the housing challenges.

The Government announced, on 16 February, a new temporary measure to subsidize the interest charge on mortgage loans.

«This measure will apply to all contracts and not just those for which the application of this test was mandatory from 2018. It will also apply to those that report to the 2011 regime», said the official, during the initial intervention.

Fernando Medina detailed that, "for all contracts that benefit from the IRS tax deduction, the adjustment will be made so that people can benefit from the greater of the two supports".

That is, «be it the IRS bonus, or the new support that is currently being granted», he explained.

The measure, included in the “More Housing” package, applies to credit contracts of up to 200 thousand euros, for families with incomes up to the sixth scale (38.632 euros per year), through compensation of half of the excess of the reference index against 3% up to an annual limit of 1,5 IAS (720 euros).

According to the question and answer document on housing measures, published in the website of the Government, "it will be the bank to do the math and reduce what is charged to customers in the monthly installment".

Subsequently, the State will reimburse the bank for this difference.

The “More Housing” package has been in public consultation since the 20th of February and ends on the 10th of March.