Since its launch one year ago, the Emancipation Loans programme has enabled 2,052 young people to buy their first home.

In total, the Institut Català de Finances (ICF) and the private financial institutions party to the agreement have financed the purchase of 1,387 homes across Catalonia. The number of young beneficiaries is higher than the number of homes because many of them took the step as a couple and bought the property jointly.

In addition, since the age limit was raised to 40, which came into force on 1 June, the public development bank has already received 218 valid applications from people aged between 36 and 40. This is according to the latest figures compiled by the Generalitat's financial institution, as of 30 June.

55.5% of the young beneficiaries were renting and 37.0% were living with their parents

55.5% of the young people who have benefited from the Emancipation Loans programme so far were renting before buying their first home, 37.0% were living with their parents and 0.9% were in transferred housing. The remaining 6.7% fall into other situations.

The average amount of the Emancipation Loans signed so far is 36,437 euros, while the average price of the homes purchased stands at 190,092 euros. Those who have taken part are 29.7 years old on average.

The territorial distribution of the loans granted by ICF broadly reflects the population weight of each vegueria. Barcelona accounts for more than half of the loans signed (56.3%), followed by les Comarques Gironines (10.3%), el Penedès (10.0%), el Camp de Tarragona (7.7%), la Catalunya Central (6.6%), Ponent (5.0%), les Terres de l'Ebre (3.5%) and l'Alt Pirineu i Aran (0.7%).

Up to 50,000 euros interest-free for the deposit

The programme, managed by ICF and funded with an annual budget of 100 million euros from the Agència de l'Habitatge de Catalunya (AHC), was created to address one of the main obstacles young people face when buying their first home: the deposit.

Emancipation Loans finance 20% of the property's value, the part that banks do not usually cover, up to a maximum of 50,000 euros. In addition, they are interest-free and do not have to be repaid until the mortgage has been fully paid off, which will be over a maximum of 30 years.

On joining the programme, the home is permanently classified as officially protected housing (HPO) with a limited price, so that certain requirements must be met in the event of a subsequent sale or rental.

The requirements for eligibility

With the extension of the age limit introduced one month ago, people aged between 18 and 40 who are registered in Catalonia and wish to buy their first owner-occupied home, which must become their habitual residence, can apply for the Emancipation Loan.

The gross annual income of the people who will live in the home may not exceed 6.5 times the IRSC: 83,392.53 euros for a single person and 85,971.60 euros for two. In addition, applicants may not have any defaults or significant debts.

As for the home, it may be either newly built or second-hand, but it must meet four requirements: it must be located in Catalonia, have a valid habitability certificate at the time of signing, not have been previously classified as HPO, and not be at the project or construction stage.

The loans are applied for through the ICF website

Buying a home through this programme is completed by means of two complementary loans. First, the Emancipation Loan must be applied for through the ICF website to finance the deposit. If ICF approves the application, the applicant must contact one of the banks party to the agreement to request a conventional mortgage to finance the rest of the price of the home.

The financial institutions taking part in the programme so far are Abanca, Arquia, Banc Sabadell, Banco Santander, BBVA, Bankinter, CaixaBank and imagin, Caixa Enginyers, CaixaGuissona, Kutxabank, LABORAL Kutxa and UCI.