Portugal’s mortgage interest rates surge to highest level since March 2009

Written By Manuel Poças

The interest rates on mortgages have reached their highest point since March 2009.

This week, the National Statistics Institute (INE) revealed that the implicit interest rate for mortgages increased again in August. The current value, which is 4.089%, is the highest value recorded since March 2009 (around the time of the global financial crisis).

This meant that the average mortgage installment increased by 9 euros when compared to the previous month, and by 111 euros when compared to the previous year. The latter corresponds to an increase of 41.4 percentual points in 1 year.

Moreover, the value of the interest rate represents 57% of the total value of the average installment. 38% more than what it was one year ago. On the other hand, the value corresponding to amortized capital is now 43%, compared to last year’s 81%.

When it comes to the mortgage contracts closed within the last 3 months, the interest rate went from 4.173% in July, to 4.331% in August. Accordingly, the average mortgage installment increased to 623 euros.

This increase in interest rates came as a result of the European Central Bank’s efforts to fight inflation. Namely, the increase of the Euribor rate. Naturally, it impacted mortgages, increasing the price of the contracts and the value of the monthly installments.

Given the current context, the Portuguese Government is likely to approve new measures intended to help families with mortgage payments. These measures include a mechanism that is being created by the Government and the Portuguese Central Bank, which will lower the value of the installments for two years, and distribute the difference throughout future payments.

Stay up to date
Subscribe To Portugal.com's Newsletter

Receive the latest news, travel information, stories, offers and more!

Invalid email address
Give it a try. You can unsubscribe at any time.
Join our FB group Portugal Travel & Living for all things Portugal and news updates

Related Articles


Please enter your comment!
Please enter your name here

Follow Us


Most Popular

Lisbon’s Lost Café: The Legendary Chave D’Ouro

I first heard about the Café Chave d'Ouro (which translates in Portuguese as "Golden Key") in Neill Lochery's riveting book Lisbon: War in the...

99 Places You Cannot Miss in Portugal

From north to south, as well as in the archipelagos of Madeira and the Azores, Portugal's natural beauty and historical richness make it so...

Portugal Golden Visa: The Ultimate Guide to Portugal’s Golden Visa 2023

October 2023 Update: Portugal's Golden Visa Not Ending After All Portugal shocked the world in February 2023 when the government announced an end to Portugal’s...

Latest Articles