In an effort to ease the path to homeownership for younger generations, the Portuguese Government has announced new measures aimed at supporting individuals aged 18 to 35 in purchasing their first home. Starting from August 1st, 2025, young adults in Portugal will be able to access a State-backed guarantee on their mortgage loans, helping them overcome one of the biggest barriers to buying property — the lack of a down payment.
The State guarantee will cover up to 15% of the loan amount, specifically for properties intended as primary residences. This means that if a bank typically requires a 10% to 20% down payment, the State will now step in to provide a guarantee, making it easier for banks to approve mortgage applications from young buyers.
This measure comes as a response to the growing difficulties in accessing housing, especially in urban areas such as Lisbon, Porto and also in the Algarve.
Young people aged 18 to 35
Portuguese residents purchasing a first home
Properties must be for permanent residence
The price of the property must fall within the market value limit defined by the State
This initiative is designed to work in partnership with banks, which will continue to be the primary lenders. The State’s role is to act as a guarantor, not to provide direct financial aid or mortgage loans.
With this new program, the government hopes to:
Encourage homeownership among young adults
Reduce the financial pressure of high down payments
Make the housing market more accessible and equitable
If you're considering buying a property in Portugal and need guidance on financing options, including how this new support measure might affect your eligibility, visit our Mortgage Advice page for expert information and support.
At Algarve Property.com, we understand that finding your perfect home is more than just a transaction; it's a life-changing journey. With our expertise and personalized approach, we're here to guide you every step of the way, ensuring your real estate dreams become a reality. Whether you're buying, selling, or investing, trust us to provide the support and dedication you deserve.
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