MORTGAGE IN PORTUGAL: OUTLOOK AND OPPORTUNITIES IN 2025
In the current context of the Portuguese real estate market, mortgage loans present particularly favourable conditions for those looking to purchase or refinance a property. After a period of adjustment in interest rates, 2025 marks a trend towards stabilisation and reduction of the financial costs associated with mortgage financing.
MARKET ANALYSIS
- Interest Rate Reduction:
The average interest rate applied to new mortgage loans stood at 3.06% in April 2025 (latest data from Central bank of Portugal), the lowest level since the end of 2022. This decrease reflects a more stable economic environment and increased competition among financial institutions. It is expected to remain at similar levels in July, following the ongoing downward trend. - Sustained Growth in Mortgage Lending:
The total volume of property financing granted saw an annual increase of 6.8%, reflecting greater consumer confidence and market dynamism. - Specific Support for Young Buyers:
Government measures facilitate access to loans for individuals up to 35 years old, including public guarantees for financing up to 100% of the property value and tax exemptions.
WHY APPLY FOR A MORTGAGE NOW?
- Attractive Financial Conditions:
Falling interest rates translate into more affordable monthly payments and improved financial planning. - Rising Property Prices:
Property prices in Portugal continue to increase due to strong demand and limited supply, so securing a mortgage now can help buyers avoid higher costs later..
FUTURE OUTLOOK
- Declining Interest Rates
The downward trend in Euribor rates is expected to continue until the end of 2025
- Preference for Mixed Rates
Most new contracts continue to favour mixed rates (fixed for the initial years, then variable), offering greater predictability at the beginning of the loan. - Continued Strong Demand
Demand for mortgage credit remains high, driven by falling rates and incentives for young buyers. - Expansion of the Mortgage Brokerage Market
Mortgage brokers are increasingly recognised as trusted advisors, providing expert guidance and tailored solutions to help clients secure the most favourable mortgage terms and confidently navigate the complexities of the property financing market. - Increase in Average Loan Amount
The average amount of new loans is rising, reflecting greater buyer confidence.
SUBLIME MORTGAGE: YOUR TRUSTED PARTNER
At Sublime Mortgage, we offer a rigorous and personalised service based on three key pillars:
- Exclusive Access to the Best Market Offers:
We have deep knowledge of the conditions and promotions offered by financial institutions, enabling us to negotiate the most advantageous solutions for each client — maximising your benefits and savings. - Simplified and Personalised Process:
We handle all the bureaucracy, clarify doubts, and support each client closely from application through to approval and contracting of the mortgage. - Dedicated Consultancy:
We carefully assess the client’s financial profile and goals to recommend the most suitable mortgage, whether for purchase, construction, or refinancing.
