Madrid Expands First-Home Guarantee, Benefiting Under-50s and Families with Children
The government of the Community of Madrid recently announced significant updates to its “Mi Primera Vivienda” (My First Home) program, designed to help residents purchase their first home. The changes relax eligibility criteria and increase support to address the savings challenges faced by homebuyers.
Lower Eligibility Thresholds, Broader Coverage
Under the new regulations, the pool of beneficiaries for the program will expand significantly. Previously, the program primarily targeted young people under 40, but the new policy raises the maximum application age to 50. The specific guarantee amount is tiered by age:
- Under 40: Up to 100% mortgage guarantee.
- 40 to 45: Up to 95% guarantee.
- 45 to 50: Up to 90% guarantee.
Additionally, the new policy removes restrictions on family type. Now, all families raising minor children, regardless of the parents’ age, can apply for the program, enjoying the same conditions as previously eligible large families and single-parent families.
Property Price Cap and Government Investment Increased
To adapt to the current real estate market, the maximum price for eligible properties has been raised from €390,000 to €425,000. To support this expansion, the Community of Madrid will invest €25 million this year. The government is currently signing new agreements with the nine partner banks involved in the program. It is expected that the new beneficiary groups will be able to formally submit their applications a few weeks after the new agreements are finalized.
Program Background and Achievements
Since its launch in 2022, the “Mi Primera Vivienda” program has successfully helped 8,309 Madrid residents purchase a property through the public guarantee system. This measure is one of the 15 initiatives in the Community of Madrid’s 2026–2027 Housing Plan, with the core objective of making housing more accessible for residents.
Concurrent Launch of Aid Plan for Fire Victims
Alongside the new housing policy announcement, the Community of Madrid government also unveiled an aid package for residents affected by the fire in the Sierra Oeste area. For residents who lost their primary residence in the fire, the government will provide a subsidy of up to €1,500 to cover one year’s rent. Additionally, the government will offer social housing to the most vulnerable families, having already approved the renovation of 62 housing units in seven municipalities, including Alcorcón, Móstoles, and Navalcarnero, to serve as temporary accommodation. These units will be delivered with essential utilities like water, electricity, and gas.
