Implicit interest rates in housing loans reach 2-year high

  • ECO News
  • 22 August 2018

INE showed this Wednesday that the implicit interest rate for all housing loan agreements increased to 1.038% in July, reaching a value that hadn't been registered since October 2016.

The implicit interest rate on housing loans increased from 1.032% in June to 1.038% in July. Regarding the contracts that had been signed over the last three months the applicable interest rate was even higher, having raised 4.4 points in July, reaching 1.471%.

This outlines a clear trend of tax increase that has been occurring in the housing market over the last few months, particularly since May this year.

Source: INE, Implicit interest rates in housing loans


The report released this Wednesday by INE also shows that “the average value of loan repayments was €242, one Euro more than in June. The average of the owned capital increased €108 to €52,016”.

On average in July the owed capital to banks by Portuguese families stood at €52,016, an increase of €108 in comparison to the previous month. Regarding the total amount of loan repayments, the average was €242, one Euro more than in June.

The interest rate average reflected a value of €45, the same as the month before. 

These statistics are obtained through the Central Bank, or the Bank of Portugal (BdP), under the use of an internal protocol on the sharing of information between these two administrative bodies. These values show there has been a “financial effort taken on by families and the State towards compromising with housing loans”.