Madrid to expand mortgage guarantees to age 50 and approve fire housing aid

Expansion of Mi Primera Vivienda

The Government of the Community of Madrid will approve a regulatory update to its 'Mi Primera Vivienda' program during its Governing Council meeting on Wednesday, 2 September 2026. Under the new rules, the regional executive will raise the maximum eligibility age from 40 to 50 years and increase the maximum eligible property purchase price from €390,000 to €425,000. The scheme targets solvent buyers who earn sufficient regular income to afford monthly mortgage payments but lack the accumulated personal savings needed to cover traditional upfront down payments. The update also admits all families with dependent minor children regardless of parental age, matching conditions already available to single-parent and large families. To qualify, applicants must purchase their first home and demonstrate two consecutive years of legal residence in the Community of Madrid, or at least two years of seniority working at a Madrid-based company.

Guarantee scale and banking agreements

The regional administration will allocate €25 million in public investment for the 2026 financial year to back the mortgage scheme, which will be distributed once formal agreements are signed with participating lenders over the coming months. In conventional mortgage lending, commercial banks in Spain typically cap financing at roughly 80% of property value, requiring buyers to supply the remaining 20% in cash in addition to covering transaction taxes and administrative fees. Under the regional public guarantee framework, financial institutions will offer tiered mortgage financing based on the age of the borrower. Applicants under 40 years old can access up to 100% financing, applicants aged 40 to 45 can receive up to 95%, and those aged 45 to 50 can obtain up to 90%.

Since its launch in 2022, the program has helped 8,309 Madrid residents purchase property through public guarantees. The measure is part of the Madrid regional executive's Housing Shock Plan 2026/2027 and involves nine participating banking entities: CaixaBank, Ibercaja, Banco Santander, Abanca, ING, Kutxabank, Unicaja Banco, Banco Sabadell, and Eurocaja Rural.

Emergency housing aid for Sierra Oeste wildfire victims

During the same meeting, the Governing Council is scheduled to authorize a separate set of housing assistance measures for families affected by the July forest fires in the Sierra Oeste region. The plan provides rental subsidies of up to €1,500 per month for up to one year to residents whose primary residences were damaged or destroyed. In addition, the regional executive will supply fully furnished, move-in ready homes managed by the Social Housing Agency (AVS) to the most vulnerable displaced families. Regional Minister of Housing, Transport, and Infrastructure Jorge Rodrigo outlined the housing choices available to affected residents.

they will have the opportunity to decide in which home and in which municipalities they will stay.

The assistance forms part of an emergency €30 million relief package announced in late July by regional president Isabel Díaz Ayuso. The policy also includes a third funding line dedicated to rebuilding and repairing damaged properties, accessible to affected homeowners, displaced tenants, and landlords whose leased properties served as permanent primary residences.