In August 2021

Implicit interest rate on housing credit and loan repayments in the Autonomous Region of Madeira decreased

In August 2021, the implicit interest rate on housing credit in the Autonomous Region of Madeira was 0.699%, decreasing by 0.009 percentage points (pp) from the previous month. In August 2020, the implicit interest rate was 0.874%. 

The average value of loan repayments for all housing credit contracts decreased to €238 in the month of reference, with the interest set at €34 (down by €1 from the previous month) and the capital amortisation at €204 (same value as in the last month). In August 2020, the average value of loan repayments was €231. 

In turn, the average outstanding loan value for housing credit contracts rose to €59,095 (€58,811 in the previous month). A year earlier it stood at €57,809. 

In Portugal, and in all housing credit contracts, the implicit interest rate fell to 0.792% (down by 0.008 pp over the previous month). The average value of loan repayments for all contracts increased to €236 and the average outstanding loan value increased from €56,790 in July 2021 to €57,115 in August 2021, thus maintaining a steady growth since March 2019. 

It should be noted that Decree-Law no. 10-J / 2020 establishes a moratorium regime on the responsibilities of households with housing loans. The moratorium grants households the possibility to suspend the payment of the monthly loan repayment with the housing credit for a period of six months. The various banking institutions offer flexible regimes, regarding the period and repayment (interest and capital amortisation). These measures result in a reduction in the loan repayment, due to the suspension of the interest payments, capital amortisation, or both.

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