Source: Adobe Stock Author: Redaction According to information from the Bank of Portugal released this week, the average interest rate on new mortgage credit contracts and renegotiated contracts decreased in July by 0.03 percentage points and 0.09 percentage points, respectively. Thus, the interest rates for new mortgage credit contracts dropped to 3.56%, while the rates for renegotiated contracts decreased to 4.05%. There was also a decrease of 0.03 percentage points in the average value across other European countries. Portugal had one of the lowest interest rates (7th place) compared to other countries. Read more about: IRS: new tables in effect.
Source: Adobe Stock Author: Redaction The Bank of Portugal released statistics regarding new mortgage loans, recording a 74% increase in new loans contracted with a mixed interest rate in July. This means that more people are opting for a mixed interest rate, where they initially have a fixed-rate period followed by a variable-rate period. Since January of this year, the 6-month Euribor rate has been the rate that more Portuguese are choosing , representing 37.5% of mortgage contracts with a mixed interest rate. Read more about: Do you know how to evaluate loan conditions? We tell you everything.
Source: Adobe Stock Author: Redaction Payments are decreasing, and the market anticipates further declines until the end of 2025 . Portuguese households will only notice the reduction in the month of their contract review. The Euribor, the main benchmark used in mortgage loans, is expected to end the year below 3%, providing financial relief for both families and businesses. The outlook suggests that we are beginning a cycle of interest rate reductions. The next European Central Bank (ECB) meeting, scheduled for September 12 , will be crucial in setting the course for these declines. Banks have already started adjusting to this downward trend. The 12-month Euribor , which was above 4% between June 16 and November 29, 2023, even reaching 4.2%, has started to decline and currently reflects a 1% reduction. The same pattern is observed in the six-month rate, which also exceeded 4% between September 14 and December 1 and has been decreasing. According to the Bank of Portugal, in June, the most common variable rate was the six-month Euribor, representing 37.5% of all real estate loans. The 12-month Euribor followed with a 33.7% share, and the three-month rate accounted for 25.7%. Read more about: Local accommodation: extraordinary contribution revoked.
Source: Adobe Stock Author: Redaction After more than two years of constant increases in mortgage payments, Euribor rates are starting to reverse the trend, providing relief for families with home loans. The 3, 6, and 12-month rates have dropped again, to 3.469%, 3.351%, and 3.072%, respectively. This reduction has a positive impact on home loan interest rates, marking a shift for many Portuguese families, leading to some savings for many who have only seen increases in their mortgage payments until now. In the coming months, Euribor rates are expected to continue to fall, reflecting the anticipated change in the European Central Bank’s (ECB) monetary policy. According to the president, Christine Lagarde, the next meeting on the subject will be held on September 12. Read more about: April: interest rate in Portugal was lower than in the Eurozone , Youth home loans: everything you need to know , Advancement of state guarantees in home loans awaits regulation.
Fonte: Adobe Stock Autor: Redação The Swap Rate is a fundamental concept in the financial market, especially for those interested in taking out a mortgage. But what exactly is it, and why is it important? Find out more. What is a Swap? In simplified terms, a swap is an agreement between two parties to exchange future payment streams. In the case of a swap rate, this exchange typically involves payments indexed to variable interest rates for payments indexed to fixed interest rates. Swap Rate in Home Loans In the context of home loans, the swap rate is used as a reference to determine the interest rate on a loan. By opting for a loan with a swap rate, the borrower is essentially betting on the movement of interest rates in the market. There are two types: Decreasing Swap Rate : If market interest rates fall, loan payments also tend to decrease because the swap rate used as a reference will be lower. Increasing Swap Rate : Conversely, if market interest rates rise, loan payments are likely to increase as well. Why is the Swap Rate Important? Firstly, it provides flexibility, allowing the borrower to choose between a higher risk of payment fluctuations in exchange for the possibility of benefiting from lower interest rates in the future. It also helps in long-term financial planning, especially for those who intend to keep the loan for an extended period. In some situations, it is possible to acquire financial products that can protect against rising interest rates, such as reverse swaps, which offer greater security. The swap rate is an important tool for those considering taking out a loan. By understanding how it works and its implications, you can make a more informed decision and choose the option that best suits your profile and needs. It is crucial to consult a specialist to analyze the different loan options available and help you choose the one that offers the best conditions and the lowest risk.
Fonte: Adobe Stock Autor: Redação Abreath of hope and opportunity is sweeping across the Portuguesehousing market with the imminent introduction of the State Guaranteefor housing loans. This eagerly anticipated measure promises toradically transform the home buying landscape, serving as a crucialboost for those striving to achieve the dream of owning their ownhome. With the regulations still to be defined, the country stands onthe brink of a financial revolution capable of changing lives andgiving a new dimension to the concept of housing accessibility. Imagine the relief for thousands of families who can finally lookto the future with greater security and confidence. The new guaranteescheme is set to help many Portuguese who have been held hostage byrelentless banking requirements and exorbitant down payments, nowhaving the chance to secure credit for their dream home. The promiseof more accessible financing is a breath of fresh air for those whohave been blocked by financial obstacles, and the sense ofpossibility is palpable throughout the country. However, this dream will only be realized once the details of theregulations are fully clarified. The government is now in a raceagainst time to define the rules to ensure that this guaranteefunctions effectively. While the specifics remain mysterious, thepotential impact is monumental: the hope is that the implementationof the regulations will provide a framework that supports both buyersand banks, and builds a solid bridge towards a more inclusive andsustainable housing future. As we eagerly await the outcome of this initiative, theanticipation is at its peak. The State Guarantee has the power tounlock previously closed doors, enabling new dreams to be realizedand new success stories to be written. If the regulations fulfilltheir promises, we will witness a new dawn in the housing market,where the possibility of homeownership is not a distant privilege buta reality within reach for many. The future of housing in Portugal isawakening to a new and exciting chapter, and the countdown to thistransformative moment has already begun.
Fonte: Adobe Stock Autor: Redação Intimes of economic uncertainty, renegotiating contracts and creditscan be the key to restoring financial stability and finding relieffrom economic pressures. This process not only allows for adjustingthe terms of debts and financial commitments but also offers anopportunity to reassess and improve personal financial management.Following some effective strategies can make all the difference inseeking better conditions and greater peace of mind. Firstly, it’s essential to conduct a detailed analysis of yourcurrent financial situation. Before beginning any negotiation, gatherall the information about your debts, contracts, and credit terms.Understand exactly what you owe and what your monthly expenses are.This will enable you to enter negotiations with a clear and assertiveview, making communication with creditors and other parties involvedeasier. Careful planning can help identify areas where costs can bereduced or conditions improved. Secondly, prepare for the negotiation based on concrete data.Research the market and compare offers from different financialinstitutions to understand the best deal available. When talking tocreditors, be transparent about your financial situation and presenta realistic proposal. Often, financial institutions are willing tooffer more favorable terms to prevent default. Demonstrating goodfaith and a solid plan can increase your chances of securing afavorable agreement. Lastly, keep in mind that renegotiation is an ongoing process thatshould be monitored regularly. After achieving new terms, it isimportant to closely monitor compliance with the agreement and makeadjustments as needed. Additionally, maintain open and continuouscommunication with your creditors. If new difficulties arise, informthem immediately and seek new ways to adjust your commitments. With aproactive and informed approach, you can turn financial challengesinto an opportunity to strengthen your financial health and achievegreater stability.
Source: Adobe Stock Author: Redaction It is important to consent to informed actions, especially when these actions are reflected over a long period of time, as is the case with a loan . To help you in this process, we show you exactly what conditions you should evaluate when taking out a loan and can move forward with informed decisions. Analyze your situation Making an analysis of the real need to borrow is key, making sure you really need a loan and that the amount is appropriate for your purpose. Make an analysis of your net income and monthly expenses , remembering that the most advisable is not to commit more than 30% of your earnings on a loan, risk of non-payment of benefits. Make comparisons and find out about the general conditions Compare various loan proposals, in different banking institutions , evaluating the reliability of creditors and transparency of information provided. Penalties and fines should also be taken into account, in particular the conditions for late payment penalties or the application of amounts, if you decide to settle the loan before the deadline. With regard to fees, you should take into account that the nominal interest rate is the rate announced by the creditor, while the effective interest rate is the charge that gives you a global view, needing the full cost of the loan. Still within the associated costs, should also take into account the CET - Total Effective Cost - which is considered the best indicator of the real cost of the loan. You can also analyze the payment terms, keeping in mind that the longer the loan period, the smaller the amount of the instalments. On the other hand, the total cost also increases due to accrued interest. Check if the amortization system is Price, SAC - Constant Depreciation System -, or another, since this condition will have an impact on the interest paid and calculated over time. A lso check if a guarantor or guarantor will be needed, since there are some loans that require guarantees, more usually in the purchase of vehicles or real estate. To ensure you make the best choice, a careful and thorough analysis is essential. Make the right choice for you! Find out more about this topic: Credit intermediaries: how do they work? , What are the rights and duties of the Guarantor? and Credit Liability Map: what is it?
Source: Adobe Stock Author: Redaction In addition to choosing the house of your dreams, the decision on which interest rate to choose is one of the most important when taking out a mortgage , as it is something that will accompany you until the loan is paid off. Rates change according to the market and its financial indicators, so to help you understand the differences in the rates available, SUPERCASA Notícias will answer your questions. We are currently living in times when inflation in the Eurozone is out of control, and the major impact is on citizens, increasing the cost of living in general. With this in mind, the ECB (European Central Bank) has been studying the possibility of reducing interest rates, which are closely related to inflation , thus causing gradual relief and greater financial leeway for families. These changes fluctuate with the Euribor , which in turn is calculated daily and defines the average interest rate on interbank loans . The fixed interest rate If you opt for a fixed interest rate, you will always pay the same amount to the bank regardless of Euribor fluctuations. However, you should bear in mind that you may end up with a higher amount compared to the variable rate, due to the security of not having increased instalments. The rate to be applied depends on the bank, but is based on market values for the same term - this is called the swap rate. The advantages are therefore predictability and security, allowing for more precise financial planning since the monthly instalments will always be the same, and protecting you against unexpected interest rate rises , which can be crucial for families with tighter budgets. The cons, on the other hand, are cost, as the fixed interest rate is generally higher than the variable one due to the risk taken on by the bank, and inflexibility , as it prevents you from benefiting from potential drops in interest rates during the contract period. The mixed interest rate This is the rate that has been most sought after, as it has fixed interest at the start of the contract, followed by a variable rate . Those looking for greater stability prefer this rate as it is not subject to variations. It thus combines the characteristics of fixed and variable rates, dividing the contract period into two phases: in the first, the rate is fixed for a set period - for example, 5 or 10 years - while in the second phase the rate becomes variable, indexed to Euribor. This type of rate thus offers balance and savings potential, as you will have greater flexibility and benefits in relation to falling interest rates during the variable phase, but also in the first few years, during the fixed phase, when the impact of instalments on the budget is more critical. On the other hand, the mixed interest rate type gives less predictability, increasing the feeling of uncertainty, as the monthly instalment could go up after the fixed rate period if interest rates rise, making it difficult for you to plan your finances in the long term. The variable interest rate If you opt for the variable interest rate, you need to bear in mind that it depends on two factors: the spread and the 3 or 6 month Euribor rate. So if you opt for this version, you can expect to pay more if the Euribor rate rises. On the other hand, if it goes down, youll pay less. So the advantages lie in the cost and savings potential , while the disadvantages are intrinsically linked to the risk and unpredictability of interest rates, which can go up as well as down. Which is the best choice? Its important to bear in mind that each situation is unique and specific and should always be monitored by a financial institution, which will present you with the best conditions and options for your financial availability and profile. Nevertheless: - If you value security and predictability, a fixed rate may be the best option, even if it implies a slightly higher cost; - If youre looking for a balance between security and flexibility, a mixed rate may be a good alternative; - If you have a higher risk profile and are willing to take a risk in exchange for a potentially lower cost, the variable rate can be advantageous, as long as you are prepared to deal with the possibility of increased instalments. Remember that the choice of interest rate is a crucial decision with significant potential for your long-term finances. Investing time in analysing the different options and consulting a credit broker is key to making the right decision for you and your future. The criteria you should take into account before choosing are: - The stability of your income; - The term and amount of the bank loan; - The potential for career progression. If you found this article useful, then read: Three tips for dealing with rising instalments , What is a bank moratorium? Find out more , The 10 steps you need to take before going ahead with a house purchase or Home loans: what you should propose in a renegotiation
Source: Adobe Stock Author: Redaction Buying a home is one of the most important financial decisions that anyone can make, because it requires a great availability of capital, not only in the initial phase of the purchase, as over the years that it is owner. It is necessary that you prepare financially for the purchase of a property, and to help you, we give you some useful tips. First, assess your current financial situation. Make a detailed survey of your monthly income and expenses. It is important to know exactly how much money comes and goes every month to determine how much you can save for the home purchase. Create an emergency fund with at least six months of expenses to cover any unforeseen events that may arise during the purchase process. Next, consider the costs involved in buying a home beyond the sale price. Expenses such as fees associated with bureaucracy, taxes, insurance, inspection costs and any works or improvements at home should be taken into account. These additional costs can represent a significant part of your total budget, so it’s crucial to include them in your financial planning. Another essential tip is to check your effort rate. A good credit score can help you get better financing rates and loan terms. Pay your debts, avoid taking on new credits and try to reduce your financial dependencies as much as possible. If necessary, consult a finance expert to help you improve your effort rate before applying for a real estate loan. Finally , set a maximum amount you are willing to pay for the house, considering your financial capacity and the additional expenses mentioned. Stay within this limit to avoid compromising your financial health in the future. Research and compare different financing options, negotiating whenever possible to get the best terms. Planning the budget for a home purchase requires time, dedication and a lot of organization. Having knowledge of these tips will be more prepared to face the challenge, being able to realize the dream in a safe and conscious way. Remember that financial preparation is the key to a successful purchase and to ensuring you enjoy your new home without financial worries. Follow the SUPERCASA Notícias for more tips like this! Will you live alone? Tips to organize
Source: Adobe Stock Author: Redaction Buying a property is one of the biggest inveastments that a person makes in life , and so, as with any other major decision, it is crucial to take the right steps when making the purchase offer. Many buyers, especially first-time buyers, who have never acquired any real estate property may feel lost in this process, but we have good news for you: is not difficult and to help you, we will guide you step by step! Write down the steps required to draw up a winning purchase proposal, increasing the likelihood of being able to buy your dream property and win good deals! 1. Assess your financial situation Before any other step, assessing your financial situation is critical to getting a clear view of your ability to purchase a home. This is where you will determine how much you can invest in a property , considering the purchase value, additional costs - such as taxes and fees - and your monthly expenses. A good starting point will be to calculate your effort fee , which you can do with a bank. By getting this calculation, you will have a sense of how much you will have to spend on the purchase, at an early stage and throughout your life, and thus understand whether it is possible or not to move forward with the acquisition. 2. Search the market Take the time to research the real estate market in the area where you want to buy a house. Analyze the prices of properties similar to the one you want to buy, as well as market trends and characteristics that influence the value of a home. This research will be fundamental to help you define a fair value to propose. However, at this stage, it is advisable to seek the services of a real estate agency that, with its own tools, can present you Comparative Market Analysis , and thus help you to achieve the right and fair selling price. 3. Visit the property It is essential to visit the property in person to have a better perception of its state, characteristics and potential. Take into account the positive and negative points of the property, and do not throw yourself head-first at the house you visit. Evaluate all your needs and expectations, and be realistic about your financial capabilities. 4. Gather documentation To formalize your proposal you will have to present some documents such as proof of identity, taxpayer number, IRS declaration and bank account statement. So, to be prepared and get a speedy process, make sure you have all the documentation in order before submitting your proposal as well as your financial evaluation. 5. Make the offer to the seller or agency The purchase proposal must contain your purchase intentions and information such as buyer and seller identification, property data, proposed value, payment method and deadlines for the completion of the purchase . The ideal is to have with you the help of a real estate broker, who will represent your interests and follow up the process with all the necessary knowledge bases. And consider that the proposal can be delivered either directly to the seller or to a real estate agent, depending on whether the person selling the property has opted for this type of services or not. And remember: be cordial, show interest and present a fair and proportionate proposal to the conditions indicated in the ad . 7. Negotiate with the seller After the offer is submitted, there may be some reticence on the part of the seller who, in the first instance, may even refuse it. So, you need to be prepared to negotiate with the seller if you even want to buy that property, and try to establish an agreement that is advantageous for both parties. Consider your limits and goals, and be flexible to find fair solutions for both. 8. Enter into the contract-promise of purchase and sale After reaching an agreement with the seller, it will be time to conclude the contract-promise of purchase and sale (CPCV), which formalizes the deal and defines the conditions of the purchase, as the final value of the property, the form of payment and deadlines and penalties in case of withdrawal or non-compliance with any of the clauses. 9. Complete the purchase You will reach the final stage, which means that you will have signed the CPCV and are ready to take the necessary steps to finalize the purchase. At this stage, you must perform the payment of the of the property, the public deed and the registration of ownership, always taking into account that, when accompanied by a specialized professional, everything will be simpler - not only ensures that the process is carried out legally, but it will also have a faster execution of bureaucracies. And to achieve exactly your goals, we leave you some extra tips: • Be proactive and show interest in the property when it is disclosed, contacting the advertiser to visit it; • Present yourself as a serious and reliable buyer; • Be willing to negotiate, but keep your limits in mind, no matter how much you want to buy the property; • Have the guidance of a trusted professional, such as a real estate agent. You can find the ideal real estate agency to accompany you here , ensuring that turns a somewhat complex process into a fast and rewarding experience.
English
Português
Français
Español
Deutsch
Nederlands
Русский
中文(简体)
