In October 2023

Implicit interest rate on housing loans rose to 4.6%

According to information provided by Statistics Portugal (INE), in October 2023, the implicit interest rate on housing loan agreements in the Autonomous Region of Madeira (RAM) reached 4.555%, marking an increase of 0.168 percentage points (pp) compared to the previous month. It is noteworthy that, in October 2022, the implicit interest rate on housing loan agreements was only 1.295%.    

The average value for loan repayments for all housing loan contracts increased by 8 euros compared to the previous month, reaching 404 euros. Interest payments amounted to 236 euros (an increase of 9 euros from the previous month), while amortisation stood at 168 euros (a decrease of 1 euro from the preceding month). In the same month of the previous year, the average value of loan repayments was 290 euros.

On the other hand, the average outstanding amount for housing loan contracts increased, reaching 63,130 euros this month (compared to 63,125 euros in September 2023). One year earlier, it was 61,432 euros.

At the national level, considering all housing loan contracts, the implicit interest rate increased to 4.433%, a rise of 0.163 pp from the previous month. The average value of loan repayments for all contracts increased to 392 euros, with the average outstanding loan growing to 64,186 euros (compared to 63,962 euros in the preceding month). In the country, interest rates rose by 8 euros compared to the previous month, while the amortised capital decreased by 2 euros.

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