Interest rates rise on home loans
According to data released by the National Statistics Institute (INE), the implicit interest
rate across all home loan contracts rose to 3.162% in August. This represents an increase of 2.7 basis points compared with the previous month and the highest level since October 2025.
For financing intended for home purchases, the implicit interest rate also increased, reaching 3.148%. The rise in interest rates comes as the average outstanding loan balance continues to grow.
Outstanding capital reaches new record
In August, the average outstanding capital on home loan contracts increased by €725 compared with July, reaching €80,188. According to INE, this is the highest value since the statistical series began.
The combination of higher outstanding capital and rising interest rates was directly reflected in mortgage payments. In August, the average monthly payment reached €418, €4 more than in the previous month and €24 more than in the same period of 2025.
Of the total payment, around half corresponds to interest, while the remaining amount goes towards repaying the principal.
New contracts have higher payments
For contracts signed over the previous three months, the interest rate remained at 2.910%. For loans intended for home purchases, there was a slight decrease to 2.897%. Despite stable interest rates on new contracts, the average outstanding capital increased. For loans signed over the previous three months, the average amount reached €185,812, €3,336 more than in July.
This increase in the amount borrowed also affected mortgage payments on new contracts. In August, the average payment reached €744, €13 more than in the previous month and 14.3% above the figure recorded one year earlier.
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