Simulations by DECO Proteste/Contas e Direitos for Lusa are based on a scenario with a financing of 150,000 euros over 30 years and a ‘spread’ (commercial profit margin) of 1%.
Under these conditions, a credit contract with these terms and indexed to Euribor at 12 months will have an installment of 638.98 euros, a reduction of 134.48 euros compared to the amount paid since the last review in July of the previous year.
Meanwhile, a client with a credit under the same conditions but with reference to the Euribor at six months will see their installment decrease to 636.46 euros, a drop of 48.21 euros from the 684.67 euros they have been paying since the last revision in January.
In the case of a credit indexed to the Euribor at three months, the installment will now be 631.11 euros, decreasing 37.61 euros compared to the last revision in April.
The mortgage installment will ease again in July before the European Central Bank pauses the interest rate cuts. On a 200,000-euro loan over 30 years with Euribor at 12 months, the reduction will be nearly 165 euros.
Notícias ao Minuto with Lusa | 08:34 – 30/06/2025
The decline in the monthly installment for contracts renewing in July is more pronounced in 12-month credits and slightly lower for loans indexed at six and three months, compared to those renewing in June.
Since the beginning of 2024, individuals with variable-rate mortgages have been experiencing monthly installment reductions due to the European Central Bank’s (ECB) interest rate cuts as their contract renewal dates approach.
During its meeting on June 5, the ECB decided to lower interest rates to 2.0%, marking the seventh consecutive reduction.
The decrease in installments is larger for loans with Euribor at 12 months because these installments are only reviewed once a year and thus feel the impact of all the interest rate cuts since the previous review.
Despite the reduction in mortgage payments to the bank, the amounts remain well above those before the ECB began raising interest rates to combat inflation (a cycle that started in July 2022).
The mortgage installments simulated by DECO Proteste/Contas e Direitos in February 2022 (when Euribor interest rates were negative) were 447.01 euros with Euribor at six months and 444.85 euros with Euribor at three months.
The average Euribor considered for the revision of a variable-rate loan corresponds to the month preceding the signing of the credit contract. These values were calculated considering the June 2025 Euribor averages, which were 2.050% at six months, 1.984% at three months, and 2.081% at 12 months.
