Lisbon, April 21, 2025 (Lusa) - The implicit interest rate on mortgage loans fell in March for the 14th consecutive month, to 3.735%, the lowest since June 2023 and 9.5 basis points less than in February, INE announced today.

"The implicit interest rate on mortgage loans fell to 3.735%, 9.5 basis points lower than in the previous month, accumulating a reduction of 92.2 basis points since the maximum reached in January 2024 (4.657%),"  Statistics Portugal (INE) said on Monday.

For contracts signed in the last three months, the interest rate fell from 3.200% in February to 3.048% in March, a monthly drop of 15.2 basis points and an accumulated decrease of 133.2 basis points since the maximum reached in October 2023.

The implicit interest rate on mortgage loans reflects the ratio between the total interest due in the reference month and the principal outstanding at the start of that month (before amortisation).

For house purchase, the most relevant financing destination for mortgage loans as a whole, the implicit interest rate for all contracts fell by 9.1 basis points compared to February, to 3.715%.

For contracts signed in the last three months, this rate fell 14.6 basis points compared to the previous month, to 3.045%.

In March, the average monthly instalment for all contracts was 398 euros, two euros down on the previous month and five euros less (-1.%) than in March 2024.

Of these €398, €217 (55%) corresponded to interest payments and €181 (45%) to amortised capital.

In contracts signed in the last three months, the average instalment fell by €18 in March compared to the previous month, to €604, and fell by 2.4% compared to the same month in 2024.

In March, the average outstanding capital for all contracts rose €553 compared to February, to €70,065.

The average amount owed for contracts signed in the last three months was €144,507, €3,490 more than in February.

PD/ADB // ADB.

Lusa