The Regional Government of Madrid is expanding its Mi Primera Vivienda mortgage guarantee program to help residents aged up to 50 buy homes without prior savings.
The Governing Council will approve a 25 million euro investment for 2026 to fund the initiative, which expands eligibility and increases maximum loan coverage across several age brackets.
Under the updated rules, eligible home buyers under 40 years of age can access public guarantees allowing banks to fund up to 100 percent of the property value. Applicants aged between 40 and 45 can receive financing of up to 95 percent, while those between 45 and 50 years old can secure mortgages up to 90 percent.
Regional authorities have also increased the maximum purchase price of properties eligible for the scheme from 390,000 euros to 425,000 euros. In addition to broadening the age limit, the new regulation incorporates families with dependent minor children, while maintaining access for large families and single-parent households without age restrictions.
New age brackets and property price caps
The Mi Primera Vivienda program assists residents who possess sufficient financial solvency to meet monthly mortgage repayments but lack the initial cash reserves required by commercial lenders.
In Spain, commercial banks standardly cap residential mortgages at 80 percent of a property's purchase price or valuation. Home buyers typically must provide the remaining 20 percent upfront as a deposit, along with an estimated 10 percent to cover property transfer taxes, notary fees, and legal costs.
Under the Madrid scheme, public guarantees cover the financing gap above standard bank limits. Participating commercial banks issue the loan directly to the home buyer, while the regional government guarantees the final portion of the debt to reduce upfront cash requirements.
Financial backing and bank agreements
The 25 million euro fund approved for 2026 will be distributed among participating commercial banks after formal agreements are signed in the coming months. Lenders must fulfill specific conditions established by the regional government to receive guarantee allocations.
Nine financial institutions currently participate in the scheme: CaixaBank, Ibercaja, Banco Santander, Abanca, ING, Kutxabank, Unicaja Banco, Banco Sabadell, and Eurocaja Rural.
The Community of Madrid is the autonomous regional authority encompassing Spain's capital and surrounding cities, with a population exceeding 6.7 million people. Rising residential property prices across the metropolitan area have made initial capital accumulation a primary hurdle for prospective buyers.
Track record of the Madrid housing initiative
The regional executive launched the Mi Primera Vivienda program in 2022 to ease entry into the housing market. Since its creation, the formula of public guarantees has helped 8,309 Madrid residents purchase their own homes.
Regional officials stated that the latest modifications form part of the 2026/2027 Housing Shock Plan. The policy framework aims to promote home ownership, encourage independence among residents, and support long-term family plans across the region.
