Interest Rate on Mortgages Down to 0.826% In April

20 May 2021 – Ana Custódio

The average outstanding principal loan amount and monthly instalments stood at 55,915 euros and 231 euros, respectively.

According to data presented by the National Institute of Statistics, the implicit interest rate for mortgage contracts in April stood at 0.826% ( vs 0.841% in the previous month).

For contracts signed in the last three months, the interest rate fell from 0.705% in March to 0.655% in April.  The average capital in debt increased 244 euros in the month under review, settling at 55,915 euros. The average instalment rose 3 euros, to 231 euros.

The implicit interest rate on mortgage loans fell to 0.826%, 1.5 basis points down from the previous month. Regarding contracts signed in the last three months, the interest rate was 0.655% (vs 0.705% during the last period).

For the most relevant category of mortgage loans, for acquiring a home, the overall implicit interest rate decreased to 0.844% (-1.4 b.p. in comparison to March). For contracts signed in the last three months, the interest rate stood at 0.652%.

Regarding monthly instalments, the average payment rose by three euros, to 231 euros. Of this amount, 38 euros (16%) correspond to interest and 193 euros (84%) to amortized capital. In contracts signed in the last three months, the average value of the instalment fell 22 euros to 276 euros.

In April, the average principal outstanding for all contracts rose by 244 euros compared to the previous month, to stand at 55 915 euros. For contracts signed in the last three months, the average outstanding principal was 114 752 euros, 926 euros more than in March.

Translation: Richard D. K. Turner