Will home installments remain high even with public guarantee in financing?

Public guarantee will help young people access credit, but will payments remain high?  

The government measure that will allow young people up to 35 years old to have access to a public guarantee in housing credit has positive aspects, however some analysts believe that even so, the value of the financing installments will continue to be high.

According to news shared by the Notícias ao Minuto, the analyst from the XTB brokerage, Henrique Tomé, believes that the measure "eases (a lot) the financial effort of young people", but that, nonetheless, "the value of the installments will still be high, given the high price of houses and the financing they need", considering that there will be "many households that will not be able to pay the value of the installments without putting themselves in a tight financial situation even with this aid from the State", cites the news.

For the analyst, this measure will also incur risks "such as dependence on state support for families", so "it may disproportionately benefit young people with higher incomes who have greater ability to commit to a loan" instead of those in need, he explains.

According to senior economist at Banco Carregosa Paulo Monteiro Rosa, the measure in question, which will allow "many young people without savings to overcome the current requirement of banks of a 10% down payment when buying a house", runs the risk of "losing effectiveness" if there is "no action also on the supply side". The solution, according to the economist, will be to "encourage civil construction companies to significantly increase the housing stock", as this is "the main problem of rising prices".  

He also believes that the measure will not address the fact that property prices remain very high compared to the national average income and the imbalance between supply and demand.

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