In 2021,

In the Autonomous Region of Madeira, the median effort rate with permanent home loans for borrowers was 13.06% 

Based on the recently released data by Statistics Portugal (INE) regarding the effort rates with permanent home loans (2021), DREM releases today the data related to the Autonomous Region of Madeira (ARM).

In 2021, the median effort rate with permanent home loans for borrowers in the Region was 13.06% (12.78% at the national level), and four out of the eleven municipalities in the ARM reported median values higher than the regional reference. The municipality of Câmara de Lobos (14.15%) recorded the highest effort rate in the Region. Considering only borrowers with at least one contract signed in 2021 (6.2% of the total borrowers), the median value of the effort rate in the ARM was 16.18%.

In the Region, the top 20% of borrowers with the highest effort rates used more than 1/5 (21.02%) of their income to pay their housing credit instalment in 2021 (20.99% nationwide). Municipal analysis highlights two municipalities with values above 23% in this indicator, with Calheta (23.72%) registering the highest value, followed by Porto Moniz (23.17%).

The median effort rate with permanent home loans in 2021 was higher for borrowers aged 34 or under (15.54%), compared to borrowers aged 65 or over (14.62%) and borrowers aged between 35 and 64 years (12.78%). Considering only borrowers aged 34 or under belonging to the first half of the distribution of net taxable income (IRS) for all taxable persons – incomes up to 844 euros per month – in 2021, the median value of the effort rate with home loans amounted to 20.74% at the regional level (19.40% nationwide).

The median effort rate for borrowers with home loan contracts involving 2 or more borrowers was 12.59%, with 14.74% for those with a single borrower. Segmenting by gender of borrowers in contracts with a single borrower showed higher housing effort rates for men (15.01%) compared to women (14.60%).

The median effort rate with permanent home loans for borrowers with at least one contract signed in 2021 (16.18%) was higher than the effort rate considering all borrowers (13.06%).

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