In 2024, Portugal's housing credit market experienced significant growth, fueled by lower interest rates and tax incentives for individuals under 35. According to the Bank of Portugal (BdP), new housing loans reached €17.6 billion, an increase of €4.5 billion compared to 2023, marking the highest level in the past decade.
The implementation of Decree-Law No. 48-A/2024 in August, which exempts first-time homebuyers under 35 from IMT and stamp duty, led to youth loans accounting for 47% of new mortgage contracts. Additionally, consumer and other purpose loans rose to €6.4 billion and €2.5 billion, respectively.
The BdP also noted a decline in loan renegotiations, dropping from €12 billion in 2023 to €7.8 billion in 2024, reflecting greater financial stability among households.
Savings Trend and Interest Rate Decline
The average interest rate on new housing loans decreased by 0.99 percentage points in 2024, reducing the average monthly installment to €414, down by €8 compared to 2023. For loans active in both December 2023 and 2024, monthly savings reached €25.
Mixed-rate loan contracts became more popular, rising from 66% to 74% by the end of 2024. Early repayments of housing loans totaled €10.2 billion, a decrease of €0.4 billion from the previous year.