Caixa Geral de Depósitos Gets €95 Million Mortgage Boost

For policymakers, the key issue is not just access to credit but whether the program can keep pace with seasonal demand without leaving approved borrowers stranded. Caixa said the guarantee has covered 27% of the mortgage credit it has written since the start of 2025 and has been used by 51% of the young customers it financed, showing that the state backstop has become central to the bank’s youth-lending business.

The bank said the scheme’s delinquency rate remains below 1%, a sign the program has not yet produced obvious credit-quality stress even as lending volumes rise. That matters for Portugal’s housing market because it suggests the expansion is supporting first-time buyers without, at least for now, materially weakening underwriting standards.

Before the latest boost, Caixa said it had already committed €435.5 million of a €507.2 million envelope, leaving just €71.7 million available and enough for less than two months of lending at recent usage rates. The bank had warned that without extra funds, the facility could have run dry in the second half of October.

Caixa said the fresh €95 million will cover approved loans, meet expected year-end demand and keep the program operating through 2026, but added that the allocation applies only to the current regime and does not imply an extension into 2027. That leaves the housing-support debate squarely on the policy agenda, with investors watching whether other lenders face similar top-ups and whether stronger demand spills into Portugal’s broader mortgage market.