Mortgage for young people under 36: advantages and requirements

The mortgage for young people under 36, extended until 2027, allows you to benefit from a state guarantee on the loan. But what does it involve and how does it work?

How does the mortgage work for young people under 36?

The mortgage for young people under 36, established with Legislative Decree 73/2021 (Sostegni Bis Decree), was created to encourage the housing independence of young people who wish to purchase a property but may not have sufficient financial guarantees to obtain financing.

This initiative is based on the Consap First Home Guarantee Fund and offers various advantages. People under 36 can benefit from exemption from the main taxes for the purchase of a property and from a public guarantee on the mortgage equal to 80% of the required capital, allowing them to obtain financing up to 100% of the value of the property.

Renewed several times, the loan for young people under 36 was recently refinanced for three years following the latest Budget Law. The First Home Guarantee Fund will have a total allocation of 670 million euros for the three-year period 2025-2027, with 130 million allocated to 2025 and 270 million for each of the following two years, 2026 and 2027. This allocation responds to the growing number of requests, with a 15% increase in applications admitted in the first nine months of 2024 compared to the same period of 2023. Thanks to this endowment, the fund will guarantee the necessary financial support for the next three years, also addressing the challenges linked to the progressive decrease in interest rates, which has contributed to the increase in demand for guaranteed mortgages.

What does the Consap First Home Guarantee Fund provide?

The Consap Fund offers the possibility of taking advantage of a guarantee:

• of 50% of the remaining mortgage capital for most applicants;
• up to 95% in some specific cases, as priority categories - single-parent families with minors, young couples, atypical workers and so on - defined from time to time at government level.

The guarantee applies to mortgages not exceeding 250,000 euros, at participating banks, provided that:

• the property does not belong to luxury cadastral categories, such as A/1, A/8 and A/9;
• the loan is aimed at purchasing, renovating or improving the efficiency of a property.

The extensions provided for by the mortgage for young people under 36

With the aforementioned Sostegni Bis Decree, the basic measures provided for by the Consap Guarantee Fund have been extended to some categories of citizens, including young people under 36 years of age, becoming a real first home mortgage bonus. 

The first definition of the loan for young people under 36 provided various benefits, including:

• the possibility of obtaining financing up to 100% of the value of the property, thanks to a state guarantee up to 80% of its value;
• exemption from the payment of registration, mortgage and cadastral taxes linked to the purchase of a property;
• a tax credit for properties subject to VAT, recoverable in compensation or through reimbursement when filing the tax return.

What are the rates for mortgages for young people under 36?

Having learned the changes planned for 2024, and the related access requirements, it is more than physiological to ask which mortgage rates are provided for young people under 36.

It is important to underline that the measure introduced at government level does not define precise rates with which credit institutions must comply: simply, mortgages under 36 cannot have an interest rate higher than the average rate recorded for usury purposes, i.e. the average global effective rate that the Ministry of Economy and Finance establishes for each quarter.

In fact, it must be remembered that the bonus in question represents a financing guarantee, for example to obtain a mortgage for young people under 36 without down payment, not a rate reduction measure. At the same time, individual banks can independently offer favorable conditions to their young customers.

For this purpose, it is therefore useful to use online tools to find the best mortgage for your needs, which are also useful for making one mortgage simulation under 36, taking into consideration the most generous loan to value that can be availed of thanks to the bonus.