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Bank of Portugal (LoP) rules that create restrictions on the granting of new housing and consumer loans, stating that families can only devote half of their income to bank loans , come into this gift
were announced in February, the bank supervisor and regulator justifying that the goal is that banks do not take excessive risks on new loans and that customers can repay their debts.
These limitations arise when the BoP admitted to the start of June, in the Financial Stability Report, that there are "some signs" of overvalued real estate prices, albeit limited.
For now, these rules are only one recommendation – even if banks that do not respect them must explain – but in May, the BOP governor, Carlos Costa, warned Parliament that if banks do not respect them, they can go from recommendations to
The BOP recommends granting new credits only to clients who spend no more than half (
[19659002] The new rules establish three types of limits:
50%) of their net income with the monthly payments of all loans held (housing and consumption).
The Banking Controller makes exceptions allowing him to exceed this limit of effort rate up to 5% of the total amount of credits granted for each bank each year and that one-fifth of the amount total credits granted each year can have an effort rate of 60%.
In badyzing the ability of the debtor, banks still have to take into account factors such as interest rate increase (by three percentage points) in order to prevent the rise in the rate of interest. Euribor does not jeopardize repayment capacity of loans and a reduction in monthly income for customers who, at the end of the contract m over 70 years
Limits on the value of loans to real estate [19659002] The regulator recommends that the ratio between the loan amount and the value of the property pledged as collateral be limited to 90% for loans for clean housing and permanent housing. In other words, in these cases, the borrowed money for the purchase of the house can represent at most 90% of the value of the property given as collateral.
This ratio is calculated based on the lower value between the purchase price of the house and the
Finally, in the case of credits for the acquisition of real estate held by the banks they and for contracts
The Bank of Portugal recommends a maximum of 40 years as the limit of the term of the loan for rent.
It also calls for a gradual convergence towards an average maturity of 30 years until the end of 2022.
New consumer credits must last at most and 10 years.
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