Mortgage credit: BdP eases stress test required for borrowers.

Looking for the most suitable housing credit for you and gathering all the essential information? It's true, with the stress test relief, it may now be easier. To make it even simpler, use the free services of a credit intermediary, such as those from Poupança no Minuto, and streamline your credit process to the maximum! To better understand the impact of the BdP change, read on.

Bank of Portugal eases criteria for granting mortgage credit.

In a statement, quoted by Notícias ao Minuto, the Bank of Portugal (BdP) disclosed that it has changed the instructions regarding the stress test required by banks for clients when contracting a mortgage credit (DSTI - Debt-Service-to-Income), as well as the average maturity of new contracts.

So, the Bank of Portugal indicates having changed "the criteria for weighing the impact of increases in the index of credit contracts with variable or mixed interest rates on consumers' solvency". In practice, to ease the stress test required by banks when granting a mortgage loan, lasting more than 10 years, the Bank of Portugal suggests simulating an increase of 1.5%, instead of 3%.

In credits up to five years, a 0.5% interest rate increase is simulated, and in credits up to 10 years, a 1% interest rate increase is simulated, instead of 1% and 2%, respectively.

Average maturity of new contracts should not exceed 30 years.

According to the publication by Notícias ao Minuto, the BdP also communicated that "the average maturity of all new housing credit contracts, credit with mortgage guarantee or equivalent granted by each institution, should not exceed 30 years".

Regarding the effort rate, the governor of BdP, Mário Centeno, has already stated that "there is no change in the recommendation", as "the maximum effort rate established by the recommendation remains at 50%. What happens is that the shock that is given in the interest rate, to calculate the effort rate that is then compared with this value of 50%, is altered," he explains.

However, the governor of BdP also emphasizes that "it is not intended with this change to subject, allow or recommend that families have a higher level of effort than what was recommended before this publication."

According to Notícias ao Minuto, the new requirements for access to mortgage credit will be in force five business days after the BdP announcement.

Relief in housing credit requirements: Talk to a credit intermediary.

The new relief measure for the DSTI stress test for housing credit access can be helpful if you want to access this financing to buy your home.

If you are in doubt about whether it will have an impact on your case, talk to a credit intermediary. The agents of Poupança no Minuto can simulate your case and present the best market proposals.

With the assistance of an intermediary, you have access to a free service that takes you to the most suitable conditions and helps you choose the best credit for yourself.

This may be your opportunity to get your home loan approved, to buy your new house... contact us and start the process today!