In 2022

Median effort rate with permanent home loans for borrowers increased compared to the previous year across all municipalities of the Autonomous Region of Madeira

The Regional Directorate of Statistics of Madeira (DREM) has published data for the Autonomous Region of Madeira (ARM), regarding the effort rates with permanent home loans, based on recently released data by Statistics Portugal (INE).

In 2022, the median effort rate with permanent home loans for borrowers in the Region was 14.70% (compared to 14.49% nationally), with three of the eleven municipalities in the ARM exceeding the regional median. Compared to 2021, this indicator increased slightly less in the Region (+1.64 percentage points) than nationally (+1.71 pp). The municipality of Câmara de Lobos recorded the highest effort rate in the Region (15.66%), followed by São Vicente (15.66%) and Santa Cruz (14.80%). For borrowers with at least one contract initiated in 2022, the median effort rate in the ARM was equal to that of the country at 19.10%, a rise from 16.18% in 2021.

In the Region, the top 20% of borrowers with the highest effort rates allocated nearly a quarter (23.90%) of their income to housing loan repayments in 2022 (24.01% nationally). This indicator rose compared to 2021, both in the ARM and nationally, where it was 21.02% and 20.99%, respectively. At the municipal level, São Vicente was the only municipality to exceed 25% in this indicator, with 26.14%.

The median housing loan effort rate in 2022 was higher among borrowers aged up to 34 years (18.71%) compared to those aged 35–64 years (14.38%) and those aged 65 years or older (14.10%). Among borrowers aged up to 34 years belonging to the lower half of the net income distribution (income up to €890 per month) for all taxpayers, the median housing loan effort rate in 2022 was 26.77% regionally (25.87% nationally).

The median effort rate for housing loans involving two or more borrowers was 14.15%, compared to 16.73% for single-borrower contracts. Segmentation by sex among single-borrower contracts revealed higher housing loan effort rates for men (16.78%) than women (16.69%).

The median effort rate with permanent home loans for borrowers with at least one contract initiated in 2022 (19.10%) was higher than the effort rate when considering all borrowers (14.70%).

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