The interest rate on the total mortgage contracts was 3.978%, the lowest value since July 2023, decreasing 11.3 basis points compared to December (4.091%), according to data released by the National Statistics Institute (INE).
The year 2024 brought new dynamism to the mortgage market in Portugal.
More families applied for mortgages to buy properties, a trend that gained momentum as the Euribor decreased throughout the year, making pressure in the Banks to offer more attractive loans solutions (especially mixed-rate mortgages).
Everything indicates that, in 2025, the demand for mortgages will continue to grow as the Euribor drops to 2%.
- INTEREST RATES DECREASING SINCE THE BEGINNING OF 2024: As the Euribor decrease for all terms, there is an increased choice of lower mixed rates.
- LOWER MONTHLY INSTALMENTS: The reduction of the interest rates has a direct impact in the instalments, which have become lower.
- MORE ATTRACTIVE MORTGAGE OFFERS: Banks are revising their mortgage solutions, offering more competitive mixed rates and spreads (bank profit) below 0.8%, which encourage the families to choose these products.
- MUNICIPAL PROPERTY TRANSFER TAX (IMT) EXEMPTION FOR RESIDENTS UNDER THE AGE OF 35 YEARS: Since August, young people up to 35 years old have benefited from exemption from IMT and Stamp Duty on the purchase of their first property.
- CONTRACTING LARGER MORTGAGES AMOUNTS: With the fall in interest rates, the possibility of taking out larger loans is a reality.
SO, THE PERSPECTIVE FOR 2025 IS GREAT!!!
IF YOU HAVE THE DREAM OF MOVING FORWARD TO BUY A NEW PROPERTY WITH A MORTGAGE, THIS COULD BE THE BEST MOMENT.
HAVE YOU EVER THOUGHT ABOUT IT?
For any questions, please don’t hesitate to contact us!
