The Canary Islands Government has approved a new mortgage support scheme designed to help younger first-time buyers get onto the property ladder by financing up to 95% of the value of their first home.
The programme, called Hipoteca Joven Mi Primera Vivienda (“Young Mortgage – My First Home”), has been approved this week by the regional government and aims to remove one of the biggest obstacles facing first-time buyers, saving enough money for a deposit.
Normally, banks in Spain only finance up to 80% of a property’s value, meaning buyers must cover the remaining 20% themselves, plus taxes and fees. Under the new scheme, eligible applicants will be able to secure mortgages covering up to 95% of the purchase price.
The initiative is aimed mainly at people under 40, although large families and single-parent households will not face any age limit restrictions.
Speaking after the approval, Pablo Rodríguez, the Canary Islands’ Minister for Public Works and Housing, said the government wanted to revive a measure that had previously been very successful.
He explained that the main goal was to remove the savings barrier preventing many young people from buying property in today’s market.
To qualify for the scheme, applicants must have lived in the Canary Islands for at least two years, must not already own another property, and must earn less than five times the IPREM public income indicator — currently around €36,000 per year over 12 payments or approximately €42,000 over 14 payments.
The property being purchased must also have a maximum value of €250,000.
Applications will be managed directly through participating banks, several of which have already expressed interest in joining the programme.
Before the scheme officially launches, the decree must still be reviewed by the Canary Islands Consultative Council, which has up to 30 days to issue its report before final approval is granted by the regional government.
The announcement comes amid growing concerns over housing affordability across the Canary Islands, where rising property prices and limited housing supply have made it increasingly difficult for younger residents to buy their first home.
