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Home loan installments indexed to the Euribor six-month rate drop again in June.

Posted by on June 26, 2017
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Home loan installments have dropped for almost two years now, following the drop in Euribor rates.

Cliente que tenha um empréstimo no valor de 150 mil euros a 30 anos, indexado à Euribor a seis meses com um 'spread' (margem de lucro do banco) de 1,0%, vai passar a pagar 465,36 euros a partir de junho, menos 2,43 euros do que na prestação anterior..

Customers with housing loans indexed to the Euribor six-month rate will again pay less to the Bank in June, while those who have contracts indexed to a three-month rate should continue to pay the same installment value.

According to the calculations made for Lusa (agency) by Deco/Dinheiro&Direitos, a customer who has a loan in the amount of 150 thousand euros repayable in 30 years, indexed to an Euribor six-month rate, with a ‘spread’ (bank’s profit margin) of 1.0%, will be paying 465.36 euros as of June.

This value represents 2.43 euros less than what was paid in December when the last revision took place.

In the case of a loan under the same conditions, but indexed to the three-month Euribor rate, that customer will pay 460.13 euros as of next month, the same value paid in March when the last revision took place.

The monthly average Euribor rate for May was -0.251% for six months, slightly below that of April, while the three-month rate was of -0.329, practically the same as for April (-0.330%).

Home loan installments have dropped for almost two years now, following the drop in Euribor rates, traded even at negative values.

In Portugal, 90% of home loan agreements use a variable interest rate, and the Euribor six-month rate, followed by the Euribor three-month rate, is the most adopted index.

The Euribor rates are determined by the average rate a group of more than 50 Eurozone banks is willing to lend money to each other in the interbank market. In Portugal, public bank Caixa Geral de Depósitos is part of this panel.

Fonte: Dinheiro Vivo