The subsidy is paid to those who have home loans this month. How it works?

a The government approved a measure that creates exceptional support for those who have mortgages in the form of interest supportwhich lasts until December 31, 2023. This support will be paid this month, but there are some conditions that are due.

What are covered contracts?

according to Bank of Portugal (BdP)This system applies to Credit agreements for the acquisition, works or construction of permanent residencesregulated by Decree-Law No. 74-A/2017, of June 23, in the current form, which:

• It was celebrated Until March 15, 2023;
• You have an initial contracted amount equal to or less than 250 thousand euros;
• Subject to variable interest rate system or, being hybrid interest rate contracts, are in a variable rate period;
• You have no arrears;
• having been entered into before 2018, or with an initial repayment period of less than 10 years, registered Euribor variance of at least 3% For the value in effect on the date of conclusion of the contract.

Which clients can be supported?

Also according to the BdP, to access this system, customers must comply with, cumulativelythe following requirements:

• to have Tax residency in Portugal;
• to have Annual income equal to or less than the sixth step From the IRS code schedule, effective on the date of the support attribution, by reference to their most recent annual IRS declaration, or, above, showing that they have experienced Reduction in income by more than 20% that puts them on IRS Step Six or lower;
• For clients who are not required to file an annual IRS return and who have monthly income from work declared for Social Security or recipients of social benefits, Total monthly income that does not exceed an amount corresponding to 1/14 of the maximum value for Step Six of the IRS schedulein effect on the date the support is assigned;
• No financial assets (which includes, in particular, deposits, financial instruments, capitalization or savings insurance or treasury certificates) with a total value of more than €29,786.66 (62 times the Social Support Index – “IAS”);
• You have one Voltage rating equal to or greater than 35% of your annual income to the value of your mortgage loan payments;
• If the home loan agreement has more than one borrower, the eligibility requirements It applies to everyone borrowers.

How do you apply for interest support?

Also according to banking supervision, to take advantage of the temporary interest subsidy, Customers must submit a request to access the bonus to the respective institutionProvided with the following items:

• Latest IRS return or latest IRS settlement memorandum or, in the case of clients who are exempt from filing an IRS return, any document proving that they have annual income equal to or less than the IRS Step Six maximum or who are above , they have suffered a reduction of more than 20% of their income in proportion to the maximum limit of the sixth degree;
• Updated income information, in the case of clients who have experienced a decrease of more than 20% of their income that would fit them up to the maximum of the sixth IRS measure;
• Updated information about your financial assets.

How does the interest subsidy work?

Temporary interest subsidy is applied when the credit agreement indication equal to or greater than 3%BdP explains.

Bonus applies to The difference between the index value calculated contractually that it:

• 3% threshold; or
• It is considered the minimum for the purposes of assessing the solvency of the customer, if it is higher than 3%.

The reward corresponds to:

• 75% of the amount calculated when the client has annual income equal to or less than the maximum for Step 4 of the IRS schedule; or
• 50% of the amount calculated when the customer has annual income greater than the fourth step maximum and equal to or less than the sixth step maximum on the IRS schedule.

Still according to BdP the reward will get The maximum annual amount per credit agreement is 1.5 IAS, i.e. 720.64 EUR.

Also read: Home, Families and Riba: Calendar with all the support from the government