The monthly mortgage payment for homeowners with variable rate contracts is set to decrease by 88.88 euros this month for a credit of 150,000 euros indexed to the 12-month Euribor, based on a simulation by DECO.
The September payment, considering an average 12-month Euribor rate of 2.114%, will amount to 641.67 euros, compared to 730.55 euros in the same period last year, reflecting a drop of 88.88 euros.
DECO Proteste/Contas e Direitos’ simulations are based on a scenario with a 150,000 euros loan over 30 years and a commercial profit margin of 1%.
For customers with similar conditions but referencing the six-month Euribor, the payment will decrease by 31 euros to 639.22 euros, accounting for values from the last revision in March.
In the case of loans indexed to the three-month Euribor, the payment will now be 634.11 euros, down from 639.47 euros during the last June revision, equating to a decrease of 5.36 euros.
On July 24, the European Central Bank (ECB) halted a series of seven consecutive rate cuts, maintaining the deposit rate at 2.00%, the lowest since early 2023.
‘Stock’ of Housing Loans Rises 8.1% in July
Housing loans continued to accelerate in July, rising by 8.1% year-on-year, marking the highest growth since August 2008, totaling 106.325 billion euros, according to the Bank of Portugal (BdP).
“The housing loan stock increased by 986 million euros from June, totaling 106.325 billion euros at the end of July. Year-on-year, it continued on the acceleration trajectory, with an 8.1% growth, the highest since August 2008,” the central bank detailed.
In July, the total amount of loans to individuals grew by 8.0% compared to the same month in 2024, also the highest annual growth rate since August 2008, totaling 139.133 billion euros, 1.144 billion more than in June.
Loans for consumption and other purposes rose by 158 million euros from June, reaching 32.808 billion euros, and increased by 7.7% compared to the same month last year, below the 7.9% registered in the previous month.
The BdP detailed that the annual growth rate was 7.0% in consumer loans and 9.0% in loans for other purposes.
At the end of July, the personal loan stock totaled nearly 13.050 billion euros, 73 million more than in June, with a 7.2% year-on-year growth, identical to the previous month.
Car loans amounted to almost 8.816 billion euros, an increase of 72 million euros from June, with an annual growth rate of 9.9%, while credit card balances reached nearly 3.260 billion euros, 26 million less sequentially, and an annual growth rate of 7.7%.
The business credit stock at the end of July was 74.246 billion euros, 113 million euros more than in June, and a year-on-year growth of 3.5%, representing a “slight slowdown” compared to the previous month’s 3.6%.
Micro, small, and large companies maintained positive annual growth rates (12.0%, 2.2%, and 0.8% respectively), while medium-sized companies continued to post a negative rate (-2.6%), according to the BdP.
Credit to the construction and real estate activities sector maintained its acceleration, with the annual growth rate reaching 7.6% (compared to 7.1% in June).
In the trade, transport, and accommodation sectors, the annual growth rate was 1.8%, with varied behaviors in this aggregate: credit to accommodation and food services and trade grew compared to the same month last year (2.9% and 3.0%, respectively), whereas credit to the transport and storage sector declined annually by 2.9%.
