The Balearic Government will act as guarantor of 20% of the mortgage loan granted by banks for the purchase of flats. Reserve 15 million euros from this year's budget to facilitate the purchase of the first home of up to 270,000 euros and for citizens who declare a maximum income of 57,000 euros in individual declarations or 64,000 in joint ones.
The Balearic president, Francina Armengol, signed this Monday the agreement with the three banking entities that have joined the proposal: Caixabank, Caixa Colonya and Cajamar. Armengol has encouraged the other entities to join. The program will be operational until 2024 and will be accessible to those who have lived on the islands for at least five years.
The Government's movement seeks to break the glass ceiling of access to housing in a community where prices are skyrocketing. The Balearic Islands closed last year with the highest average price in the entire State, 3,257 euros per square meter, well above the state average, which was 1,951 euros. The average mortgage that was signed in the last quarter of the year represents an average fee of 1,097 euros per month compared to the 646 that are paid in the rest of the State, according to the College of Property Registrars.
The Balearic Islands are experiencing a real estate storm, with prices never seen before and with the highest interest rates in Spain, which is why the Government of Armengol has decided to become a guarantor for the acquisition of the first home, among other measures approved during his mandate, such as the expropriation of the use of empty houses from large holders.
The Executive has set up a commission to try to study the possibility of prohibiting purchases by people who have not been residing on the islands for at least five years, both foreigners and Spaniards, something that clashes with the freedom of movement of people and capitals enshrined by the European Union. In any case. The Balearic Islands are looking for a loophole given the tension in the real estate market.
The central government has already warned the Balearic Islands that, at this time, the treaty that prevents these limitations must be complied with, but the Balearic Government wants what they call the "Balearic exception" to be approved, in order to adopt these limitations in light of the serious problem What does this matter mean right now in the islands?
The president of the Government has celebrated that, for the first time, "in addition to promoting the most important housing policy in history", agreements are reached with the private sector to be able to advance in the protection "of such an important right". Francina Armengol has assured that, sometimes, things are difficult, "but in the end we end up seeing results" and has thanked the signatory entities for joining the agreement
The Minister of Mobility and Habitatge Josep Marí, has highlighted that with this Program, the Government will make it easier for people who are going to request a mortgage to access greater financing from financial institutions, because they have the Government's guarantee behind them. "We carry out a housing policy for people who want to access a rental, increasing the public housing stock of officially protected housing that we have and betting on rental aid, and now we also want to lend a hand to those who have the possibility of buying a home ", has added.
