100% mortgages in Madrid: who can get one in 2026

For years the rule was clear: to buy a home you needed savings of at least 20% of the price plus costs and taxes. Today there are ways to finance up to 100% of the price. But careful: 100% of the price does not mean €0 of savings.

We explain who can access these mortgages and what you need to have ready.

Banks usually lend up to 80% of the lower of two values: the purchase price or the valuation. The remaining 20% is put up by the buyer. To cover that gap there are two public guarantee schemes: the national one (ICO) and the Community of Madrid's.

In both cases, a public authority acts as guarantor for that portion, which allows the bank to lend more. They are not grants: the loan is yours and you repay it in full.

This is the national scheme. Main requirements, according to the information published in 2026:

• Age: under 35 on the signing date, or families with dependent children (no age limit).
• First home: not owning another home, with some exceptions.
• Income and assets: there are maximum income limits, which since June 2026 vary by province, and maximum assets of €150,000 per person.
• Maximum price in the Community of Madrid: €325,000.
• Guarantee: up to 20% of the purchase price (up to 25% for homes with a good energy rating).
• Validity: extended until 31 December 2027.

You apply directly at participating banks.

This is the regional scheme, which was extended in 2026:

• Age: under 50. Large families, single-parent families and families with dependent children, no age limit.
• Financing by age: up to 100% (under 40), up to 95% (40 to 45) and up to 90% (45 to 50).
• Maximum price: €425,000.
• Registered residence: at least 2 years living in the Community of Madrid.
• First home: not owning another home in Spain.
• Use: main residence for at least 2 years.

It is also processed through the banks taking part in the scheme.

Note: in principle the two schemes cannot be combined, and the requirements are updated frequently. Before you start house-hunting, confirm the current conditions with the bank.

This is the trap many buyers fall into. The bank finances the price, but not the purchase costs, which in Madrid can amount to around 7–8% of the price for a resale home.

Example with a €300,000 flat:

• ITP (6%): €18,000
• Notary, Land Registry and processing agency for the sale: €2,000 – 3,000
• Valuation: €300 – 600
• Total out of your own pocket: approximately €20,000 – 22,000

On top of this comes the arras deposit, which is paid before the mortgage is approved (although it is later deducted from the price). And do not forget moving costs, furniture or possible renovation.

Guarantee schemes cover a lack of savings, not a lack of creditworthiness. The bank will still look at:

• Your job stability and type of employment contract.
• That the monthly payment does not exceed roughly 30–35% of your income.
• Your other debts.

The usual sequence is to find the home, sign the arras, pay the deposit and then apply for the mortgage. If the bank turns you down, you may lose the deposit, which is often €10,000, €20,000 or more.

To avoid this, the arras should include a financing condition: if the bank does not grant the mortgage on the expected terms, you can terminate the contract and get your deposit back. Many agency arras contracts do not include it, or word it in a way that does not protect you.

At Consultor y Abogado we review your arras before you sign them, check the legal status of the home and help you plan the purchase so there are no surprises. We work exclusively for the buyer.

The first consultation is free.

Information based on the published conditions of the ICO Guarantee Line and the Community of Madrid's Mi Primera Vivienda plan in 2026. Requirements may change and each bank applies its own criteria. This article is for information only and is not a substitute for professional advice on a specific case.

Further reading: what to check before buying a home in Madrid and what taxes you pay when buying a home.