In response to the concerns about the significant impact of increased monthly payments for families with housing loans for purchasing or constructing their permanent residence, Decree-Law No. 91/2023, dated 11/10, has come into effect.
It establishes an exceptional and temporary measure aimed at reducing the installment payments made by mortgage borrowers and stabilizing them for a period of two years.
What Has Changed for Borrowers?
Temporary Fixation of Installments: Individuals who have obtained bank financing for the acquisition, construction, or renovations of their permanent residence, under variable or mixed interest rate contracts (in the case of the latter, as long as they are within the variable interest rate period), can request to fix the amount of their installment at 70% of the 6-month Euribor rate. The difference between the reduced amount and the normal due amount, which represents the relief that families will benefit from under this measure, will be paid in the last two years of the credit contract if the remaining term of the contract, at the end of the measure’s application, is less than six years. Alternatively, it will be paid starting from the fourth year for contracts with a remaining term equal to or greater than six years from the expiration date of this measure.
Early Repayment Without Costs: Families will continue to have the option of early repayment without any commission or charge (the early repayment commission is suspended, at least until 31/12/2024).
Exclusions and Requirements: This measure excludes credits that, at the date of the law’s entry into force, have a remaining term of less than five years, are in arrears or default, or whose borrowers are in a situation of insolvency or are covered by specific debt restructuring programs.
Deadline for Requesting: The installment fixation must be requested from the institution by at least one borrower by March 31, 2024. However, if there is more than one borrower on the contract, all of them must agree to join the measure.
The aim is to provide predictability to families with housing credit in managing their family budgets and, thus, ensure stability in the housing market.
