Feijóo pushes 100% mortgage guarantees to ease first-home purchases for young Spaniards

Alberto Núñez Feijóo announced a plan for public guarantees that would allow banks to lend the entire price of a first-time buyer’s home, mirroring a model already used in the Valencian Community. The Valencian Institute of Finance says the guarantee program has supported purchases totaling €495.9 million, with guarantees amounting to €67.3 million. By covering 100% of the price, buyers would only need to provide funds for taxes and closing costs, eliminating the traditional 20% down-payment.

The proposal also includes tax cuts that could save a buyer up to €26,000 and a “young home savings” account offering additional incentives. Feijóo framed the initiative as a response to soaring housing prices and a chronic shortage of about 750,000 homes, arguing that such measures could help young people achieve home ownership faster.