December brings new decrease in house installments

Home loans with variable interest rates will decrease again in December.

The installments of variable rate contracts will decrease again in December, especially for loans indexed to the 12-month Euribor, which will see a reduction of 133 euros compared to the last revision.

According to a simulation by Deco/Dinheiro&Direitos shared in the Notícias ao Minuto, based on a loan of 150,000 euros with a term of 30 years, these will be the decreases in their respective terms:

• 6-month Euribor rate:

Contracts with six-month Euribor will see a decrease in the installment to 697.91 euros, 87.91 euros less than in June (785.82 euros).  

• 12-month Euribor interest rate:  

For contracts with a 12-month Euribor, the average rate in November was 2.506%, which in December translates to a reduction of 1.516 percentage points compared to the same period in 2023. Thus, the monthly installment for December will be 674.07 euros, 133.18 euros less than before.

• Euribor 3-month:  

The shorter term option shows a decrease of 47.58 euros compared to September, settling at 716.73 euros.

This simulation was based on the averages of Euribor rates in November: 3 months at 3.007%, 6 months at 2.788%, and 12 months at 2.506%.

These averages are considered for performance reviews with variable rates in the month following the signing of the contract.

Since the beginning of 2024, mortgage borrowers have experienced declines in installments, following contractual revisions.

According to the Bank of Portugal, in September, the six-month Euribor was the most common in variable rate contracts, representing 37.26% of the total amount. The 12-month Euribor represented 33.37%, followed by the three-month Euribor with 25.46%.

This evolution reflects the impact of the decrease in Euribor rates, which continue to positively influence the monthly expenses of many Portuguese people with housing credit.

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