Source: Pexels Author: Redaction The new rules on home loans bring changes that can help both in accessing new loans and in those already in instalment payments. However, what really changes? We will give you answers to the most frequently asked questions about our law that aims to fight against interest rates. #What do these new rules consist of? These rules have been studied and adapted to the situation that families encounter with mortgages. The consecutive rises in interest rates have forced the Government to take action on the possibility of an inability to respond in this area. #What are the changes? The main changes in the diploma foresees a help and support in the credits so that the situation does not drag out to a default in the payments, that is, accompaniment for and mitigation of the increase of the effort rate in new contracts of acquisition or construction, as well as, the possibility of renegotiation of credits, where the commissions and penalties will not exist. #In what scope can there be renegotiation of credit? The possibility of renegotiation has exceptions and can be applied to any type of contractual process of mortgage credit, provided that it is for the purchase of permanent home ownership, is up to a maximum of 300 thousand euros of capital in debt and a variable rate - indexed to Euribor. #Who can and should renegotiate the credit? In this process, there are some variables that can exclude the possibility of renegotiation, that is, to access this verification, it is necessary that the effort rate exceeds 50%, there is a 5% increase in the effort rate - that exceeds 36% - or that the effort rate is above 36% and has suffered a 3% increase. #How does the credit renegotiation process work? The process is initiated in the bank where the mortgage credit is, and the banking entities have 45 days to reassess the whole situation, having to inform the clients of the whole process. The families can also, on their own initiative, ask for the renegotiation of the credit if they feel that they are in the process of defaulting on the payment of the credit. #What is the cost of renegotiation? According to the Government, this process, that aims to help the families with their instalments, should not have charges for the clients. #What solutions can the bank present? Renegotiating the credit will present you with several possibilities and adjust the best one for the client. The extension of the credit term, acquisition of new credit, reduction of the interest rates temporarily or even credit consolidation are the possible solutions presented. #How long does this law last? These renegotiation rules presented are in force since its entry and applied throughout the year 2023. #Can requesting renegotiation bring risks? When you make this request, it may result in consequences if your situation is not viable, placing you in a situation of client at risk. In the future, it may bring consequences, such as not granting new credit you need and even lead to the cancellation of credit cards as prevented by the Bank of Portugal. This measure allows better conditions for making early repayments, allowing credit to be transferred, namely by obtaining better credit conditions, or using savings that families have available to reduce indebtedness. Follow more at: Diploma for renegotiation of credit: what are the changes? and Housing Credit: Cash it in on IRS.