Saving on your home loan can become easier by asking for help: Credit intermediaries from Poupança no Minuto will assist you with renegotiating terms or transferring your loan to another bank.

Or first read how the Government's tightening and reduction measure works, and whether it will apply to you.

The new government measure to fix home loans is now available.

The new measure announced by the Government to help Portuguese with their home loans, allowing for the fixing and reduction of the monthly installment for two years, can now be requested from the bank since November 2nd. You can now apply to join until the end of March 2024.

Remember that this is a measure that will last for two years, and will be based on the application of the Euribor at 70% in the monthly installment, but that, after four years, you will have to reimburse the differential amount between the original installment and the one that you ended up paying in the 24 months. This amount is spread out over the remaining period of the credit contract.

But moving forward with the request, when is it possible to start paying the lower installment?

After placing the order, the bank has 15 days to respond with simulations of the implementation plan for the measure in your credit, including "the deferred amount, the amount to be paid later, and the repayment plan of the deferred amount," according to a statement from the Government.

Then, the client has 30 days to inform the bank if they want to proceed with the implementation of the measure or not.

As soon as the plan is accepted by the client, the bank applies the new installment – fixed and reduced – for the following 24 months.

Note that the “amount can be repaid in advance, without commissions or additional charges”, according to the Government, since “banks cannot charge commissions or fees for fixing the installment, nor condition its application on the contracting of other products or services".

But will it be eligible? Learn the credits that could trigger the brake.

However, not all credits are eligible and meet the various requirements to be able to trigger this brake on provision.

According to Notícias ao Minuto publication, holders with: can access the Government measure.

Housing credits for the purpose of acquiring, constructing, or renovating one's own permanent housing;
Credits with variable rate or mixed rate in variable rate period;
Credits contracted until March 15, 2023;
Renegotiated credits or transferred to another bank, even if done after March 15th;
Credits with remaining term over five years;
With credits without default, without PARI or PERSI plans, and not in insolvency.

So, if you meet these requirements, the first step is to go to the bank where you have the credit contracted and proceed with the request.

Not eligible? Consider transferring credit

If you are not eligible, know that there are other options to save on your mortgage. Even if you meet the requirements, solutions such as a credit transfer can give you access to more savings, as you will not have to repay the saved amount later with interest (as when applying the new measure).

A housing credit transfer is currently and as a rule, a cost-free process that provides you with new conditions. By transferring the credit, you can change your interest rate regime: if you have a variable rate, the change can make quite a difference. Switching to a fixed rate or a mixed rate, you have a stabilized interest rate, ensuring more security.

There are banks promoting mixed rates starting at 3.00%, which contrasts with the values of Euribor rates (variable) around 4%. The mixed rate allows you to have a fixed rate for a certain period, such as two years, for example, and then return to the variable rate, when it is expected that the Euribor rates will drop again.

Let's move forward? Count on the credit intermediaries of Poupança no Minuto to help you throughout the transfer process, helping you choose the right proposal! Contact us and access a free follow-up, so you can start saving on your home credit as soon as possible!

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