Housing Loans for the Disabled with New Rules

For people with disabilities, there is good news on the horizon: the new subsidized housing credit scheme for people with disabilities will come into effect. Law nº64 / 2014, which regulates this new regime, has already been published in the Diário da República and brings new measures aimed at protecting consumers who have these specificities and facilitating access to subsidized credit. Among the main novelties is the fact that the contracting of life insurance by the lender is no longer compulsory. In addition, the legislation also provides that consumers can access this scheme at a later time than when credit has been acquired if they have in the meantime acquired a disability with a degree of total disability equal to or greater than 60%. Learn in detail what will change. See pegasus-one.org for a summary


1. What changes?

1. What changes?

Up to now, people with a disability (with a degree of total incapacity or above 60%) when they needed to make a mortgage loan could access the same conditions that benefit workers of credit institutions, which gave them access to the possibility to buy or build a house with more favorable financing conditions. However, the regime that is still in force (see Decree-Law 43/76 and Decree-Law 230/80) has several limitations. On the one hand, and according to a criticism pointed out by Deco, requires that consumers with disabilities comply with the same requirements applied to workers in the financial sector, without regard to their specificities. In addition, and according to the same association, when the deficiency is acquired when there is already a loan contracted, it is not always easy to switch to the subsidized scheme. Under the new regime, this situation is changing. The law provides for greater ease in the migration of credit from the general scheme to the system of granting subsidized housing loans to persons with disabilities. “When the borrower has acquired a degree of incapacity under the terms of Article 3 (a) after the date of signature of a mortgage credit agreement … the mortgage loan is necessarily migrated to the present regime, “says article 6 of the new diploma.

Also the contracting of a life insurance is no longer compulsory. It should be recalled that financial institutions require clients to take out two home loan insurance: life insurance and multi-risk insurance. However, people with disabilities, because of their specificities, face many difficulties in finding insurers that are available to conclude life insurance. To circumvent these limitations, the new law even says: “The contracting of life insurance to access the conditions provided in housing loans to persons with disabilities is not mandatory.” As far as the financing conditions are concerned, the decree states that credits granted under this scheme will benefit from a bonus corresponding to the difference between the reference rate for the calculation of rebates (TRCB) – or the contractual interest when it is lower than the TRCB – and 65% of the minimum rate applicable to the main refinancing operations of the ECB. It is recalled that the payment of this bonus is assumed by the State.


2. What are the necessary conditions for accessing the new regime?

What are the necessary conditions for accessing the new regime?

To be able to access the new housing credit scheme, people will have to meet a number of requirements. To know:

– have a degree of incapacity total or superior to 60%;

– Be over 18 years old;

– The maximum amount of the loan to be granted can not exceed 190 thousand euros, and the financial guarantee ratio is 90%;

– The maximum term of the loan is 50 years. However, this time frame is dependent on the maximum age of the customer at the end of the contract. Remember that this is a variable that is defined by the bank itself.

– The loan can not be used for the “acquisition of fire of the property of ancestors or descendants of the person concerned”;

– The borrower can not sell the property acquired under this scheme within five years after the date of conclusion of its loan agreement. If this happens, “the borrower is obliged to pay the amounts of the bonuses he has received, plus 10%”. However, there are some situations that escape these penalties. It is, for example, the case of borrowers who sell the house before the five-year period on grounds of unemployment, death of the holder, change in the size of the household or occupational mobility.


3. What documents do I need?


In order to be able to access this new regime, citizens with disabilities must, in addition to the documents required by the credit institutions, present a medical certificate “of multipurpose incapacity, proving the degree of incapacity of persons with disabilities”. In addition, it is compulsory for citizens to submit the last statement of tax “available for personal income tax or, in the case of exemption from presentation, other official documents issued by their respective finance department”, explains the statement. which governs the new regime. In addition, they will also have to make a declaration, under an honorary agreement, that they are not holding another loan under any subsidized credit scheme.


Armed Forces excluded from this new regime

Not all people with disabilities will benefit from the conditions laid down in this new regime. This is because according to the Bank of Portugal, the disabled of the armed forces will continue to be subject to the subsidized credit conditions that are currently in force.


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