Interest Rate for Housing Loans in Portugal Rises to 3.675% for Contracts Closed in Previous Three Months – April 2023

The interest rate for housing loan contracts closed in the previous three months has increased to 3.675% in April 2023, according to the latest data. This marks a significant rise from the previous rate of 3.507%.

The overall implicit interest rate for all housing loan agreements also saw an increase, reaching 3.110% in April, the highest value recorded since June 2009.

Furthermore, the average value of owed capital rose by 273 Euros, reaching 62,972 Euros. This indicates a notable increase in the financial burden for borrowers.

The average value of loan repayments experienced a modest increase of 10 euros, reaching 341 Euros. However, when compared to April 2022, this represents a significant surge of 84 euros, marking a 32.7% year-on-year increase.

For contracts closed in the last three months, the average value of loan repayments increased by 14 euros, reaching 590 euros. This reflects a substantial 52.5% increase compared to the same month in the previous year.

The rise in interest rates and loan repayment amounts highlights the evolving landscape of housing loans in Portugal, impacting borrowers and their financial obligations.

These changes emphasize the importance of carefully assessing the terms and conditions of housing loan agreements before making financial commitments.