Good news for homebuyers! August mortgage payments drop in Portugal, saving up to €123
For a €150,000 loan over 30 years, monthly savings range between €21.46 and €123.54.
Mortgage payments are falling again in August. According to simulations requested by CM from consumer group Deco Proteste, monthly savings will range from €21.46 to €123.54, depending on the loan term.
For the first time since November 2023, the three-month Euribor average has risen, reaching 1.986% in July — an increase of 0.002 percentage points from the previous month.
The six-month Euribor, most commonly used for variable-rate mortgages in Portugal, also rose by 0.005 percentage points to 2.055%. Meanwhile, the 12-month Euribor fell to 2.079%.
Despite these rate changes, August mortgage payments will still decrease. Based on the reference rates used to adjust loan contracts, all mortgage payments will fall in August, with the greatest savings for those on the longest-term (12-month) rate.
For a €150,000 loan over 30 years with a bank spread of 1%, using the 12-month Euribor, the monthly payment drops by €123.54 to €638.81.
For mortgages with semi-annual rate adjustments, the saving is €46.29, reducing the monthly payment from €683.15 to €636.86, according to Deco Proteste's calculations.
For the shortest-term (three-month) rate contracts, the August payment will be €631.27, representing a monthly saving of €21.46.
According to Banco de Portugal, the average interest rate on new and renegotiated mortgages fell to 2.91% in June — the lowest since November 2022. Portugal has the fifth-lowest mortgage rate in the eurozone, below the eurozone average of 3.29%.
Additionally, the total value of newly signed mortgage contracts decreased by €121 million to €1.904 billion. Benefiting from government support for young homebuyers, borrowers under 35 accounted for 61% of the value of new mortgages for primary residences, down one percentage point from the previous month.
INTEREST RATES FALL
Rates continue to fall
The new average interest rate on personal fixed-term deposits fell for the 18th consecutive month in June, dropping to 1.43%. With inflation projected at 2.3% this year, the real return on savings is increasingly unable to offset rising prices. Deposits with terms under one year remain the best-paying type.
Eurozone
Eurozone comparison
Within the eurozone, Portugal has the fourth-lowest fixed-term deposit rate. The eurozone average is 1.81%.
RATE CUT
Interest rates cut
The three-month Euribor is also used to calculate interest on 'Savings Certificates'. Due to the downward trend in this rate, the Savings Certificate rate in August fell to 1.9871%.