Home loan: BPI believes that only those with difficulties should fix the installment.

Save on mortgage? The credit intermediaries from Poupança no Minuto can find the right solutions for you... For example, with a credit transfer, you can even save more than by joining the support measures announced by the Government, as we will see shortly.

Sticking to the installment: BPI President defends that not everyone should sign up.

According to a Notícias ao Minuto publication, BPI's president, João Pedro Oliveira e Costa, stated at the press conference presenting the results until September that only "those who have difficulties" and not others should opt for the government's measure to fix the home loan installment, as they will "pay for this relief now later on".

Furthermore, it reinforces that "at the current moment it makes sense to take advantage, but it is important to consider for those who do not have that need, because the bill will appear later". But the Minister of Finance, Fernando Medina, argues that "the rule is for people not to leave this support and see that they have a higher debt".

Following the announced measure, the bank expects "a significant number of people" to at least ask questions and request simulations.

Please note that the difference between the original amount and what you will pay in these two years will be added to the debt at the end of the loan, so "the interest rate then in force will be added" and you will end up paying more at the end of the loan, as stated in the news.

According to statements to Lusa, quoted by Notícias ao Minuto, Deco economist Nuno Rico explains that this measure is only "very useful for families with very high effort rates", also considering that families that are not in difficulty "do not justify joining this mechanism because it has an additional cost in total", achieving better conditions with the bank.

In what does the measure of fixing the installment reflect?  

The measure disclosed by the Government presupposes that, from 2nd of November until the end of the first quarter of 2024, it can fix the monthly payment of the housing credit for two years. This measure is valid for variable-rate contracts concluded by March 15, 2023, and with an amortization period of more than five years.

The installment to be paid over the two years is lower, as an index of 70% of the average of the six-month Euribor from the previous month to the client's request is applied. After these two years, in the four years that follow, the client will then have to pay the differential value between the original installment and the one that remained diluted by the loan term.  

For example, in a home loan with an outstanding balance of 150,000€, the customer may end up paying 2,000€ more than in the current and normal amortization regime.

If the customer decides to choose this option and place an order with the bank, it has 15 days to respond with simulations of the plan, to which the customer must respond within 30 days to inform whether or not they want to proceed.

Is there another more beneficial solution in relation to the Government's measure?

For families who are not in immediate difficulty and do not need to adhere to the measure, but want to save more on their mortgage, they can access other more beneficial solutions at www.poupancanominuto.com.

As is the case with credit transfer to another bank, if the client has a variable rate contract indexed to Euribor and the current bank does not allow changing the interest rate regime.

When making a transfer, a new bank may allow you to access current campaigns with mixed or fixed rates. Currently, there are banks offering mixed rates, where you can have a fixed rate of 3.35% over two years, returning to the variable rate when it is expected that the Euribor will drop again. According to João Lemos, Director of Operations at the Credit Intermediary Savings in a Minute (PNM), these campaigns "provide stability in expenses and less pressure on families' budgets in the next two to four years".

This is a beneficial solution in the sense that the current Euribor rate is at 4%, so by changing the interest rate regime, you can save (significantly) on your home loan, it can be "the right time to contract better conditions in home credit", as indicated by the PNM manager.

If this is an option to consider, contact a credit intermediary who can help you simulate your specific case and present you with the best proposals with the best conditions. The agents of Poupança no Minuto provide this free service, assisting you in comparing proposals and choosing the most suitable one for you. They accompany you throughout the entire process, never leaving you alone!