The measures aim to help households with financial difficulties to cope with the rise of interest rates on housing loans with variable rate indexed to Euribor, as well as measures to support renting.
"The Government is aware of the current geopolitical and geo-economic context, which has translated into the highest inflation rate in recent years and, consequently, the increase in the cost of living, approves a new set of more immediate responses that aim to address the economic impacts referred to with direct effects on household incomes and access to housing," the Government justifies.
As for these, the new regime provides that tenants with taxable income up to 38,632 euros (6th IRS bracket) and an effort rate equal to or greater than 35% are entitled to a monthly support of up to 200 euros, paid until the 20th of each month, with retroactive effect since January 1 and that will remain for five years, until the end of 2028.
As for credit, the executive explains that the measures aim to "mitigate the risk of default" arising from the impact of the increase in reference indexes in credit agreements, namely by virtue of the effort rate.
In this context, support is created for borrowers of credit agreements for the purchase or construction of permanent own housing, in the form of a temporary interest subsidy when the index exceeds a certain threshold.
Finally, the regime determines that, when the credit agreement is intended for the acquisition or construction of permanent housing, the bank must allow the consumer to opt for a variable, fixed or mixed interest rate modality.
"Through these measures, with the concrete objective of protecting families and increasing their disposable income, the realization of the national plan of guaranteeing decent housing to all is deepened," argues the executive.
More nonsense from the usual Socialist merry-go-round. This is robbing Peter (the taxpayer) to pay Paul (certain homeowners and tenants). People shouldn't buy houses they can't afford, and the state shouldn't be squandering taxpayers' money on them. They are responsible for paying including when interest rates go up.
Same for tenants, the state shouldn't be subsidising people's rent. The Socialists want to intervene in every aspect of life, control and regulate everything.
By Billy Bissett from Porto on 23 Mar 2023, 19:07