Good news for anyone wishing to buy property in Portugal with finance is that interest rates on mortgages dropped – if marginally – during August compared with July, while the average monthly loan repayment remained stable at less than €300.
Typical all mortgage rates in Portugal, both fixed and variable, are pegged to the Euribor rate, with maximum LTV available for non-residents between 70 and 80 per cent, depending on individual circumstances.
A statement by Portugal’s National Statistics Institute (INE) in September confirmed this, saying: “The implicit interest rate in all contracts of mortgage loans to households for house purchases was 1.407 per cent in August, diminishing 0.006 percentage points comparing with the rate observed in the previous month. For the third consecutive month, the average loan repayments was €258. For contracts signed in the last three months, the implicit interest rate was 3.022 per cent, diminishing 0.004 percentage points from the rate observed in the previous month.”
Meanwhile, the INE revealed that the average value of housing bank appraisals in Portugal fell 0.1 per cent between July and August, to an average value of €1,013 per square metre. The year-on-year change rate was -1.6 per cent.
While in the Lisbon Metropolitan Area the average value decreased 0.1 per cent in August from the previous month, in the Porto Metropolitan Area it grew 0.1 per cent. The year-on-year change rates for these Metropolitan Areas were -0.4 per cent and -3.1 per cent respectively.