Falling Interest Rates Create Favourable Conditions for Home Buyers
The average interest rate on new mortgage contracts in Portugal fell to 2.91% in June 2025, according to the Bank of Portugal (BdP). This marks the lowest level since October 2022 and reflects a downward trend that has continued for several months.
New Mortgage Rates: Three-Month Review
Key Highlights:
- June 2025: The average rate on new housing loans dropped to 2.91%, the 19th decrease in 20 months.
- Driven by Euribor: The fall is largely explained by the decline in the Euribor, the main benchmark for Portuguese mortgages, which has been steadily decreasing.
- European Context: Portugal now records one of the lowest average mortgage rates in the Euro Area, remaining below the eurozone average in June 2025.
- Impact for Borrowers: Lower interest rates mean more manageable monthly repayments, making this an ideal time to arrange a mortgage or transfer an existing loan. An additional advance could also be considered to fund home improvements or the purchase of a new car.
In Portugal, a Range of Mortgage Solutions is Available:
- Purchase – to finance the acquisition of a residence or investment property.
- Transfer (Refinancing) – to move an existing loan to another bank under more favourable terms.
- Construction – to fund the building of a property or significant renovations, with staged disbursements.
- Equity Release – to access capital tied up in a property whilst retaining ownership.
SUBLIME MORTGAGE |
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A Sublime Mortgage is a specialist advisory service offering a boutique, personalised approach. We provide expert, discreet guidance and work closely with leading Portuguese banks to secure competitive mortgage solutions tailored to your needs. We would be pleased to discuss your requirements. Contact us at +351 917 773 279 Email: info@sublimemortgage.com |
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