In November 2020

Implicit interest rate in housing credit decreased from the previous month while the loan repayments remained unchanged

In November 2020, the implicit interest rate in housing credit in the Region was 0.813%, decreasing by 0.021 percentage points (pp) from the previous month. It is the lowest value of the available time series, which starts in January 2009. In November 2019, the rate was 0.967%.

The average value of loan repayments remained unchanged at €231 in the month of reference, with the interest component standing at €39 (down by €1 from the previous month) and the capital amortisation at €192 (up by €1 from in the previous month). In November 2019, the average value of loan repayments was 271 euros.

The average outstanding loan value in housing credit in the Autonomous Region of Madeira rose to €58,067 (€57,881 in the previous month). One year before it stood at €57,971.

In Portugal, the implicit interest rate in housing credit stood at 0.918% (down by 0.014 pp from the previous month), while the average value of loan increased to €228. The average outstanding loan value for Portugal rose from €54,645 in October 2020 to €54,915 in November 2020, thus maintaining a steady growth since March 2019.

It should be noted that Decree-Law no. 10-J / 2020 establishes a moratorium on the responsibilities of households with mortgage loans. The moratorium gives households the possibility to suspend the payment of the monthly loan repayment for a period of six months. The various banking institutions offer flexible regimes, regarding term and repayment (interest and capital amortisation). These measures result in a reduction in the loan repayment, deriving  from the suspension of the interest payment and capital amortization or both, which accounts for the differences when comparing data year-on-year.

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