First home mortgage. Here comes the refinancing for the Guarantee Fund, which provides special benefits for families and young people who intend to purchase a home. The news, however, is not just this: the 2025 budget will, in fact, include not only the extension, but also the extension until 2027. An intervention that will guarantee greater stability and continuity to the benefits provided.
First home guarantee fund, what is it?
The First Home Guarantee Fund, which is provided by Awarenessowned by the Ministry of Economy and Finance, provides 50% coverage of the mortgage for all citizens, with a maximum loan amount of 250 thousand euros. The figure includes both the purchase of the house, which must be first homeand any expenses for renovation and energy improvement of the property. The house must be intended for main residential use and must not belong to the cadastral categories considered luxury.
Because it is useful for those under 36
The guarantee percentage, however, it rises to 80% for priority categories, such as young people under 36 with ISEE not exceeding 40,000 euros, young couples, cohabitants with at least two years of cohabitation behind them, single parents with minor children and tenants of public housing. Furthermore, from January 2024 further benefits have been introduced for large familieswith guarantees that can reach 90% based on the number of children and ISEE.
How to access the Fund
Regarding the procedure for accessing the Fund, you must first check that your bank has signed up to the agreementconsulting the Consap lists. Subsequently, you can proceed with submitting the application to the banking institution, using the official forms provided by the Ministry of Economy and Finance.
Response methods and times
The request processing times are well defined: Consap has 20 days to evaluate the application and communicate the outcome to the bank. Once approval has been obtained, the banking institution has 90 days to proceed with the disbursement of the guaranteed loan.
Many requests
The effectiveness of this measure for younger people is confirmed by the numbers: approximately 70% of the first home loans granted thanks to the Fund, in fact, are intended for those under 36. In general, then, in the first nine months of 2024 the applications admitted to the guarantee exceeded 61 thousandwith an increase of 15.2% compared to 53 thousand in 2023.
Too high house prices
The difficulty for young people to buy a house in Italy is an increasingly current issue, influenced by various economic and regulatory factors. First of all, the increase in real estate prices that in recent years, have grown significantly, making it difficult for young people to access the real estate market. A phenomenon that is particularly evident in large cities, especially Milan, where demand exceeds supply.
Young people can’t do it
Obviously, the growth in house prices it also led to an increase in rentsforcing many young people to stay and live with their parents or seek alternative housing solutions. Not to mention the difficulty in accessing credit: Many young people face difficulties in obtaining mortgages due to both stringent banking requirements and of the precarious work contracts they obtain from companies. Banks, in fact, often require high guarantees and stable incomes, which many young people cannot provide.
As much as public policies and private initiatives are crucial to address these challenges to improve access to the real estate market for new generations, apart from some spot interventions, you can’t see much on the horizonespecially from those who say they are worried about the drastic drop in the birth rate.
