Families with housing loans linked to Euribor rates can continue to repay their debts without the 0.5% early repayment fee until the end of 2024. However, with the recent drop in interest rates following the European Central Bank’s (ECB) reduction of key rates, the future of this exemption is uncertain. The government is currently evaluating the situation. Finance Minister Joaquim Miranda Sarmento announced during the presentation of the 2025 State Budget proposal that a decision on this matter will be made by the end of the year. This decision, which is determined by decree-law, will clarify whether the exemption will be extended. The minister’s comments came in response to a question about the continuation of temporary measures introduced in November 2022, including the exemption from early repayment fees on housing loans. These measures were initially implemented due to the rise in Euribor rates caused by the ECB’s interest rate hikes. With the ECB now lowering interest rates, the conditions that justified the exemption have changed. As a result, the government is considering whether to extend the measure or let it expire at the end of 2024. According to recent data from the Bank of Portugal (BdP), early repayments of housing loans have been on a downward trend for several months, despite the ongoing exemption. In July, early repayments accounted for 0.89% of the total loan stock, a slight increase from the previous month. This indicates that while the exemption remains in place, its impact on early repayments has been limited. Explore the many opportunities in Portugal’s real estate market today by reaching out at your earliest convenience to arrange a meeting.
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