The Generalitat opened its term this Thursday with a plan to provide electronic subsidies that help cover part of the payments on variable rate mortgages. This initiative aims to assist households whose monthly bills have risen sharply due to interest rate increases. Applications will be accepted until September 15.
To access the subsidies, applicants must complete a form and book an appointment. After all fields are completed, a date and deadline will be assigned for the electronic processing of the request. The form is available on the Ministry of Finance and Economic Model website.
The subsidy program has a budget of six million euros, with possible increases based on demand. Its goal is to reduce the risk of vulnerable households losing their homes due to an inability to meet mortgage payments.
Amount
Two types of assistance exist, both delivered as a one-off payment. The first offers 600 euros to family units with annual income up to 25,200 euros who allocate at least 40 percent of their income to mortgage payments.
The second provides 300 euros to family units with annual income from more than 25,200 euros up to 33,600 euros who devote at least 50 percent of their income to mortgage payments.
A view from the center of Alicante highlights the regional focus of these measures. The photograph is credited to AXEL ALVAREZ.
In addition, the mortgage policy has been revised from April 1, 2022 to July 1, 2023, with an increase in mortgage interest of at least 30 percent. In all cases, only one benefit will be awarded per mortgage loan.
Demand for loans and mortgages has declined sharply, the fastest drop since the financial crisis. In the province of Alicante, the average mortgage issued stands at 105,000 euros and has become more costly, with an average monthly increase of about 230 euros and an annual rise around 2,800 euros for borrowers with variable-rate loans. This trend places a heavy burden on many families in the region, especially those with modest incomes. To guard against the rising costs, many homeowners last year shifted from floating-rate loans to fixed-rate loans to stabilize monthly payments.