Lisbon, October 31, 2025 — The average interest rate on new mortgage operations, including renegotiations, decreased in September for the eighth consecutive month to 2.84%, the lowest level since October 2022, according to the Bank of Portugal.
This decline from the 2.88% rate in August marks the 22nd decrease in 23 consecutive months, with the exception of January 2025, when it rose by 0.03 percentage points. Over the first nine months of this year, the rate has decreased by 0.36 percentage points.
For consumer loans, the average interest rate on new operations reached 8.76% in September, a reduction of 0.02 percentage points compared to August. For loans for other purposes, the average interest rate decreased by 0.04 percentage points to 3.51%.
As per the Bank of Portugal, in September, new loan operations for individuals, including new contracts and renegotiated contracts, totaled 3.409 billion euros, an increase of 364 million euros from August.
New contracts for individual loans reached 2.926 billion euros, a rise of 386 million euros compared to August, with this increase being “widespread across all purposes, but more pronounced in mortgage loans.”
New contracts totaled 2.076 billion euros for housing (+312 million euros from August), 588 million euros for consumption (+36 million euros), and 262 million euros for other purposes (+38 million euros).
Renegotiated loans totaled 483 million euros, a decrease of 21 million euros from August.
Regarding businesses, the average interest rate on new loan operations increased by 0.05 percentage points, from 3.54% in August to 3.59% in September.
This increase was due to the rise in the average interest rate on loans above one million euros (+0.18 percentage points, to 3.38%), offset by the decrease in the average interest rate on loans up to one million euros (-0.03 percentage points, to 3.76%).
In September, the amount of new loan operations granted to businesses was 2.210 billion euros, an increase of 174 million euros compared to the previous month.
The central bank detailed that this development was the result of the growth in the amount of new contracts (+183 million euros), “very partially offset” by a decrease of nine million euros in renegotiated contracts.
New loan operations up to one million euros reached 1.218 billion euros in September, 36 million euros more than in August, while new loan operations above one million euros increased by 138 million euros, to 992 million euros.
