Which banks finance 100% of a mortgage for the purchase of a property in Mallorca?

The Balearic Islands offer a new 100% mortgage allowance for the purchase of a first property. This aid is open to all residents of the Balearic Islands who want to buy their first home.

Banks will give 100% of mortgages to citizens of the Balearic Islands who want to buy their first home and can prove that they have lived in the islands for at least five years. This was announced by the President of the Government, Francina Armengol, during the general political debate on October 4 and 5, 2023. We would like to explain what this new measure of the government consists of, who can apply for it and how to do it.

ICO guarantee from 20% for home purchase: how it works and how you can apply for it.

What is the new guarantee of the Balearic Government?
Banks usually lend up to 80% of the total value of the house. This means that in most cases customers must have saved 20 % of the price of the house plus 10 % for mortgage-related expenses. Having at least 30% of the price of a property available means that many people who have steady jobs and sufficient income to afford a mortgage cannot afford to buy a property.

Let's move on to the Balearic Islands, where the real estate price is 3,615 euros per square meter, according to the Real Estate Index. This means that the purchase of an 80 square meter property in the Balearic Islands costs on average about 289,200 euros and that a Balearic citizen should therefore have saved on average about 86,760 euros.

The Government of the Balearic Islands, through the program IBAVI, offers itself as guarantor for these 20 % of the mortgage, that is, it allows (thanks to its guarantee) that these people can take up to 100 % of the mortgage, having to save only 10 % of the house price to cover the costs and taxes associated with the sale.

Grants and subsidies for housing in the Balearic Islands
The Government of the Balearic Islands offers to guarantee this 20% of mortgage, so that the citizens of the Balearic Islands can obtain a 100% mortgage.
Customers who are granted this subsidy will therefore only have to set aside 10 % for costs and taxes, which, to return to the previous example, would amount to approximately 28,920 euros.

These are the requirements to be eligible for 100% IBAVE mortgage assistance:

Aid for financing the purchase of a first apartment
The price of the guaranteed property may not exceed 270,000 euros.
Only people who have lived in the Balearic Islands for at least five years are eligible for these subsidies
Those who apply for social housing will be given priority.
For the purchase of apartments in the Balearic Islands
For apartments for permanent use
For persons earning less than 57,117 euros per year (64,257 euros for joint declarations).

When can I apply for the aid for the purchase of a home in the Balearic Islands?
You can apply for the guarantee now and it will be valid until the end of December 2024.

With which banks will it be possible to apply for a 100% mortgage to buy a house?

The following banks have agreed to apply for the Balearic Government's guarantee assistance:

1. the CaixaBank
2. Cajamar
3. Caixa Colonya

Where can you apply for the aid for the purchase of residential property in the Balearic Islands?
As with the Madrid and Murcia guarantees, the aid can be applied for directly when applying for the mortgage with the affiliated banks, and these banks are responsible for applying for the guarantee with the government.

The guarantees of the Balearic Government will be used only for the financing of primary residences with a maximum price of 270,000 euros.
Similar assistance already exists in other communities. In the Community of Madrid there is "Mi Primera Vivienda" (My First Home), which allows young people under 35 to receive up to 95% of the mortgage for the purchase of their first home.

The 100%ige mortgage help for young people to buy their first home is a measure that will undoubtedly help the citizens of the Balearic Islands. They are the second Spanish municipality where the purchase prices of apartments are the highest: 3,216 euros per square meter, after Madrid and ahead of the Basque Country and Catalonia. In Spain, the average price is 2,011 euros per square meter, as shown by the Real Estate Index.