Implicit interest rate on housing loans falls to 0.8% in July
In contracts signed in the last three months, the average value of the instalment fell €7, and the average amount of capital owed was €116,815, or €1,950 euros more than in June.
The implicit interest rate in housing loan contracts in Portugal in July slipped to 0.800%, from 0.811% in June, while the average capital outstanding increased by €328 to €56,790, the National Statistics Institute reported on Friday.
As for housing loan contracts signed in the last three months, the drop in the interest rate was sharper, to 0.674% from 0.693% in June, while the average monthly instalment was unchanged at €235.
On loans for the purchase of homes – which account for the overwhelming majority of housing loans – the implicit interest rate for total contracts slipped 1.2 basis points to 0.816% in July. For contracts signed in the last three months, the rate was 0.670%, down from 0.686% in June.
Of the €235 average value of instalments on all housing loans, €38 or 16% corresponded to payment of interest and €197 or 84% to the amortisation of capital.
In contracts signed in the last three months, the average value of the instalment fell €7, and the average amount of capital owed was €116,815, or €1,950 euros more than in June.
The implicit interest rates on mortgages is used as an indication of the financial effort made by households and the state in mortgages and are calculated on the basis of information sent by banking institutions under an agreement with the INE, it explains.
