Changes in mortgage loans in 2022

Find out what has changed from 1 April 2022 and how it will impact the mortgage credits

On 31 January 2022, the Bank of Portugal (BoP) issued a statement about the convergence of the average maturity of new mortgage contracts to 30 years. Through these changes it is intended that “institutions do not take excessive risks when granting credit, in order to strengthen financial resilience to potential adverse shocks, and promote sustainable access to funding by consumers, minimising the risk of braches

What has changed

With the revision of the 2018 recommendations on the maturity of new loans, new limits have been set depending on the age of borrowers.

New limits

  • Consumers up to 30 years old – 40 years limit
  • Consumers between 30 and 35 years old – 37 years limit
  • Consumers above 35 years old – 35 years limit

New implications

As a consequence of this shortening of credit maturity limits, instalments will be higher.

Also read: IRS 2022 – What you need to know