The Canary Islands Government has approved its long-awaited Hipoteca Joven Canaria (Canary Islands Youth Mortgage) programme, allowing eligible buyers to secure up to 95% financing for the purchase of their first home.

The scheme is aimed at people aged between 18 and 40, as well as large families and single-parent households, and applies to properties worth up to €250,000 anywhere in the Canary Islands.

The decree was approved by the Canary Islands Government on Monday following a favourable opinion from the Canary Islands Consultative Council, bringing the programme into force.

The initiative forms part of the regional government's wider strategy to improve access to housing, help younger people get onto the property ladder and support first-time buyers struggling to save large deposits.

What happens next?

Following approval of the decree, the Regional Ministry of Public Works, Housing and Mobility will now begin signing framework agreements with banks and other financial institutions that wish to take part in the programme.

Once the administrative process has been completed and participating lenders have officially joined the scheme, eligible applicants will be able to apply through those financial institutions.

Who can apply?

To qualify for the programme, applicants must:

• Be between 18 and 40 years old, or be a member of a large family or a single-parent family.
• Have lived legally and continuously in the Canary Islands for at least two years before applying.
• Be buying their first home, with limited exceptions.
• Use the property as their main residence for at least two years.
• Have a net worth of no more than €150,000 per applicant.

Applicants' income must not exceed five times Spain's IPREM (Public Income Indicator), with higher limits available for households with dependent children. Single-parent families will benefit from a 70% increase to the income threshold.

Which homes are eligible?

The property must:

• Be located in the Canary Islands.
• Cost no more than €250,000, excluding taxes and purchase costs.
• Be either a new-build or resale property.
• Include both private and protected housing.

Part of a wider housing strategy

The Canary Islands Government says the new mortgage scheme is one of several measures designed to tackle the region's housing challenges.

Other recent initiatives include reforms to speed up planning permissions, increase the supply of housing, simplify building licence procedures and introduce a new system for allocating protected housing based on social and economic need rather than random draws.

The regional government has also expanded grants for first-time buyers and rental assistance programmes, particularly those aimed at younger residents.