In May 2023

Implicit interest rate on housing loan agreements rose to 3.6%

According to information provided by Statistics Portugal (INE), in May 2023, the implicit interest rate on housing loan agreements in the Autonomous Region of Madeira stood at 3.553%, which indicates an increase of 0.305 percentage points (pp) compared to the previous month. This marks the 14th consecutive month of growth and represents the highest value since May 2009. It is important to note that in May 2022, the implicit interest rate on housing loan agreements was only 0.782%.

The average value of loan repayments for all housing loan contracts increased by 11 euros compared to the previous month, reaching 363 euros, with interest payments amounting to 181 euros (an increase of 16 euros compared to the previous month) and capital amortisation amounting to 182 euros (a decrease of 5 euros compared to the preceding month). In the same month last year, the average value of loan repayments due was 272 euros.

In terms of the average outstanding loan amount for housing loan contracts, it increased to 61,801 euros in May 2023, compared to 61,752 euros in April 2023. A year ago, the average outstanding loan amount was 60,281 euros.

At the national level, for all housing loan contracts, the implicit interest rate increased to 3.398%, a rise of 0.288 pp compared to the previous month. The average value of loan repayments for all contracts increased to 352 euros, while the average outstanding loan amount rose to 63,169 euros, compared to 62,972 euros in the preceding month. In the country as a whole, interest payments increased by 16 euros compared to the previous month, while capital amortisation decreased by 5 euros.

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