Sánchez pushes fast-track interest-free home loan scheme ahead of snap election
One day after calling a new general election, the prime minister announced an accelerated decree to provide interest-free loans for first-time home buyers, with no age limit.
Following the announcement of fresh general elections, the Spanish government moved to fast-track a housing decree that establishes a dedicated fund for interest-free home-buyer loans. The Instituto de Crédito Oficial will manage the fund, and officials claim the operational framework could be implemented in a matter of weeks, with no age restrictions for applicants. The decree is being prepared for rapid approval by the Diputación Permanente of the Congress, and the Ministry of Economy has confirmed work is ongoing, though a start date has not yet been set.
Sánchez framed the policy as an urgent response to a national housing crisis, insisting it will stay active until a subsequent government either maintains or repeals it. Legal analysts note that once the decree is validated, the loans become a legally binding arrangement that can only be altered by future legislation.
Why it matters
The plan could lower borrowing costs for many Spaniards seeking their first home during a politically volatile period.
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