One option to consider is transferring your housing loan to another bank, namely to a mixed-rate contract. This option allows a fixed interest rate for an initial period, before switching to a variable rate. But is it worth it in your case? Find out what you should analyze before making a decision.

How does Euribor affect the housing loan payment?

Poupança no Minuto is one of the main references used in the calculation of interest rates for variable-rate housing loans in Portugal. In these contracts, the interest rate results from the sum of two elements: the Euribor, which functions as an index, and the spread, defined by the bank.

When Euribor rises, the loan interest rate may increase at the next review, which could raise the monthly payment. Conversely, when it falls, the payment may decrease, depending on the contract terms.

The impact is not necessarily immediate. The review frequency depends on the Euribor term associated with the loan, which can be three, six, or 12 months. Therefore, it is important to know when the next rate review will be and understand how an eventual change could affect the family budget.

What can you do if the house payment weighs more on the budget?

If you have a variable-rate home loan, it's worth reviewing the loan terms, even if the current payment is manageable.

Check the applied interest rate, the spread, the remaining term, and the next Euribor review date. Then, assess if you have financial room to handle a possible payment increase.

If you are looking for more predictability in the coming years, you can also compare your contract conditions with proposals from other banks. The housing loan transfer allows you to change the loan to another institution and, in certain situations, obtain conditions more suitable for your needs.

Among the available options is the mixed rate, which can help reduce uncertainty during the initial fixed-rate period.

Transfer housing credit to a mixed rate: how does it work?

The mixed rate combines two distinct periods: an initial phase with a fixed interest rate and a later phase with a variable rate.

During the fixed period, the contracted rate remains, regardless of Euribor fluctuations. This allows knowing in advance the interest component of the payment and having more budget predictability.

When the fixed period ends, the loan becomes subject to a variable rate, usually composed of the Euribor and the spread defined in the contract. From that moment on, the installment may rise or fall depending on the evolution of the index and the loan conditions.

For example, if you sign a hybrid rate with a fixed period of three years, the agreed rate remains during that period. At the end, the contract moves to a variable rate, according to the established conditions.

It's important to remember that the mixed rate does not eliminate the risk of future Euribor increases. It does, however, provide greater stability during the fixed period, and it's necessary to also evaluate the conditions that will apply afterward.

What are the advantages of transferring the loan to a mixed rate?

A mixed rate transfer can be an alternative for those wanting to review loan conditions and reduce exposure to Euribor fluctuations for a while.

Among the aspects to consider are:

Greater initial predictability: the interest rate remains fixed during the agreed period, facilitating budget planning.

Possibility to improve credit conditions: by comparing proposals from different banks, you can find a rate, spread, or other fees more suitable for your profile.

Greater control over monthly expenses: knowing in advance the applicable rate during the fixed period can help organize family finances.

Opportunity to review other charges: the transfer allows analyzing also the insurance related to the loan, fees, and banking products required to obtain certain conditions.

However, these benefits depend on the specific offer. A mixed rate is not necessarily cheaper than a variable rate, and a lower down payment does not alone mean the loan will have a lower total cost.

What to compare before transferring housing credit?

Before switching bank loans, it's important to look at the overall cost of credit, not just the monthly payment value.

These are some of the main aspects to analyze:

1. Interest rate and spread

Compare the proposed interest rate with the one you have now. In case of a mixed rate, also confirm the duration of the fixed period and the applicable conditions when switching to a variable rate.

2. APR and TAE

Poupança no Minuto helps compare the cost of credit, including interest and various associated fees. The Total Amount Charged to the Consumer (MTIC) corresponds to the total amount to be paid over the loan, including the principal and costs considered in the calculation. These indicators should be analyzed in comparable offers, taking into account the term and contract conditions.

3. Insurance and related products

Some offers may depend on purchasing insurance or other banking products. Check the respective costs and see if the conditions remain advantageous when considering all expenses.

4. Transfer fees and costs

Confirm if there are fees associated with switching banks, including possible commissions, formalization expenses, or other applicable costs. Also check the early repayment conditions in the current contract.

5. Conditions after the fixed period

If you choose a mixed rate, don't limit yourself to evaluating the first years. Find out how the variable rate will be determined later and what the impact of a Euribor increase could be on the payment.

A global analysis allows comparing offers with greater rigor and understanding if the change makes sense for your financial situation.

How to know if you can get better conditions on your housing loan?

There is no solution that is most advantageous for everyone. The best option depends, among other factors, on the debt capital, the remaining term, the current loan conditions, the income, and the risk tolerance for future payment changes.

If you have a variable-rate housing loan and want more predictability, it may be worth comparing fixed-variable rate offers. If, on the other hand, you value the flexibility of a variable rate and accept the possibility of fluctuating payments, it may make sense to explore other alternatives.

Count on us to compare offers from over 30 banks and partners and rely on experts to assess the available conditions for your case.

Do a free simulation and find out if you can get better conditions by transferring your housing loan. The analysis is done at no cost and without commitment.

FAQ

If Euribor rises, does my payment increase immediately?

Not necessarily. The impact depends on the type of rate contracted and the review date of the index. In variable rate contracts, a change in Euribor is reflected in the interest rate when the scheduled review in the contract occurs.

Does the mixed rate protect against the rise of Euribor?

During the initial fixed-rate period, the contracted interest rate remains, so fluctuations in Euribor do not directly affect this rate during this phase. When the contract moves to a variable rate, the payment may rise or fall depending on the benchmark and other conditions.

Can I transfer the housing credit to another bank and choose a mixed rate?

Yes. It can analyze proposals from other institutions that offer this type of service. Approval and terms depend on the bank's evaluation, your financial profile, and the loan characteristics.

Does transferring housing credit always pay?

No. The transfer will only be beneficial if the conditions of the new proposal compensate for the costs and charges involved. It is important to compare the TAEG, the MTIC, the insurance, the fees, the term, and the future interest rate conditions.

How can I know if I can get a lower payment?

The first step is to compare your current contract conditions with proposals from other banks. A simulation allows analyzing available alternatives, but the final result depends on the conditions approved by the financial institution.

Can I do a no-obligation simulation?

Yes. You can request an analysis of your housing loan conditions to see what alternatives are available and if the transfer could be suitable for your situation, without costs and without commitment.

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