How to buy a house if you are young and have no savings?
If you are between 18 and 35 years old, live in Catalonia and want to buy your first home, the Emancipation Loan makes it easy for you.
What is the Emancipation Loan?
A public financing facility, managed by the Catalan Institute of Finance (ICF), allows you to borrow up to €50,000 interest-free to cover 20% of the home's price. This is what a bank mortgage typically doesn't cover. It's a loan designed to overcome the main barrier to home ownership: having sufficient savings to make the down payment.
How does it work?
Interest-free (0%). You don't start paying back until your mortgage is paid off. Once paid off, you have 5 years to repay it, in monthly installments.
Who is it for?
People between 18 and 35 years old. Registered in Catalonia. Buying their first home and living there on a regular basis. With income within the established limits (e.g., €80,963/year for a single person). Without significant debts or unpaid bills.
What are the conditions?
The loan covers 20% of the purchase price or appraisal value (whichever is lower), with a maximum of €50,000. The home becomes officially protected (VPO) with a limited resale price. The remaining financing must be provided through a bank mortgage of up to 30 years with a participating institution. If necessary, the buyer can contribute a small percentage with their own savings.
What is the process?
You can apply for the Emancipation Loan through the ICF Customer Area. If approved, you'll have six months to process the mortgage with a partner institution. Once the mortgage is signed, you don't have to repay the loan until it's fully repaid. You then have five years to repay it, with monthly installments and no interest.
Application and information:
Enter in www.icf.cat and access the Customer Area. Find out more at Vivienda.gencat.cat.