A home loan continues to be one of the heaviest financial decisions for many families, especially when the house payment takes up a significant portion of the monthly income. In this context, the effort rate is once again highlighted, at a time when the Bank of Portugal (BdP) is preparing more demanding rules to curb debt risks.
According to , the BdP wants to reduce the maximum effort rate applied to access to real estate credit.
The measure, which should be presented to banks soon, could come into force by the beginning of this summer, with the aim of making lending more prudent.
Tighter rules on home credit
At issue is the current 50% limit on the effort rate, an indicator that measures the percentage of monthly income used to pay credit installments and other financial charges. According to information provided by the same source, the BdP intends to lower this limit by between 5% and 10%.
The concern arises at a time when credit granting is approaching levels recorded in 2006 and 2007. There are also fears about the impact that a possible rapid rise in interest rates could have on families with mortgage loans.
What changes for families
Currently, a family with a monthly net income of R$2,000 could, in theory, receive a benefit of up to R$1,000 if the limit of 50% of the effort rate were applied. With a reduction in the limit, this maximum value could drop significantly.
The example cited shows that, if the effort rate drops to 40%, the maximum benefit supported by this family would increase to 800 euros. In practice, this can reduce the amount that banks are available to lend to certain customers.
Alternatives include adjusting the purchase
Faced with more demanding rules, families may have to review their plans. According to the aforementioned source, alternatives include giving up credit, finding ways to finance the difference, reducing the monthly installment or opting for a cheaper house.
This change can have a direct impact on those preparing to purchase a home, especially in cases where the budget is already close to the permitted limit. The smaller the margin between income and expenses, the more difficult it may be to get approved for the loan.
Banco de Portugal wants to avoid future problems
BdP data indicate that, in 2025, 94% of new credits had effort rates equal to or lower than 50%. Another 4% were between 50% and 60%, while 2% exceeded 60%.
The measure aims to reinforce financial stability and avoid future difficulties in paying loans. The details of the change must be known before the European Central Bank’s next decision, at a time when the market is closely following the evolution of interest rates.
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