The simulations conducted by Deco Proteste/Contas e Direitos, presented to Lusa, are based on a scenario involving a loan of 150,000 euros over 30 years with a ‘spread’ (the bank’s profit margin) of 1%.
Next month, a credit contract under these conditions and indexed to the 12-month Euribor rate will have a payment of 644.03 euros, a reduction of 134.20 euros compared to the amount paid since the last revision in May of the previous year.
Meanwhile, a customer with a loan under the same conditions, but indexed to the six-month Euribor, will see the payment decrease to 648.86 euros, a drop of 67.44 euros compared to what was being paid since the last revision in November.
If the loan is indexed to the three-month Euribor, the payment will be 652.73 euros, down 38.03 euros from the last revision in February.
Since the beginning of 2024, individuals with variable-rate mortgage loans have been experiencing decreases in their monthly payments as contract renewal dates approach, due to interest rate reductions by the European Central Bank (ECB).
On April 17, the ECB decided to cut interest rates by 25 basis points, as was anticipated by the markets, marking the seventh reduction since this cycle of cuts began in June 2024.
The reduction in payments is more significant for loans indexed to the 12-month Euribor, as the payment is only revised once a year and reflects the impact of all interest rate cuts since the previous revision.
Despite the reduction in bank payments for housing loans, the amounts are still well above what they were before the ECB began increasing rates to combat inflation (a cycle that started in July 2022).
In May 2022, when Euribor rates were negative, the simulated credit payments by Deco Proteste/Contas e Direitos were 461 euros for the six-month Euribor and 452 euros for the three-month Euribor.
The average Euribor considered for the revision of a variable-rate loan is that of the month preceding the credit contract signing. These values were calculated based on the Euribor averages in April 2025: 2.202% for six months, 2.249% for three months, and 2.143% for 12 months.
