As of this Saturday, the three main reference rates for home loans are finally below 3%. Installments will fall in the next review, but are still well above 2021 values.
Nothing like looking at a specific case: a loan of R$150,000 over 30 years made in November 2021, when the Selic rate was still negative. Credit intermediary, Orlando Teixeira, explains that “a installment, at that time, considering a spread of 1% was €655. In November 2022, that is, one year later, this installment increased to €832.”
In two years, the house payment – in many cases – more than doubled. It’s Selic’s fault.
“From June 2022 to December 2023, it went from 0 to 4, therefore, it practically rose 4%”, says Orlando Teixeira.
But now it is coming down, albeit much more slowly. The 12- and 6-month Euribor rates were already below 3% and as of this Friday, the 3-month Euribor also fell below this mark. 3% is a psychological barrier, it’s true, but it has a big impact on the mortgage payment. If reviewed this month, it could fall between 45 and 130 euros per month for a loan of 150 thousand euros.
For Orlando Teixeira, a credit intermediary, it is good savings, but it does not compare to what customers can achieve if they change banks.
“Banks are increasingly competitive, offer credit transfers, encourage these credit transfers at no cost or with reduced costs and allow customers to have mixed rates for one, two, three or five years.”
If you opt for a fixed rate, pay attention to the bank’s proposal. There are new reliefs planned for the coming months. Analysts expect that in just 6 months Euribor will fall to between 2 and 2.5%.
