New housing credit measures: How to proceed with a request to the bank?

Need help? The credit intermediaries of Poupança no Minuto explain the entire process to you, deconstructing the complexity of these terms, and helping you communicate with your bank to access the advantages now imposed by the Government in mortgage credit. But be aware of the new approved measures.

First, get to know the measures approved by the Government.

Home loan reduced and constant for two years 

The measure defined by the reduction and constancy of the provision of housing credit for two years will mean that it will be calculated based on an index corresponding to 70% of the Euribor at six months (applicable to other terms). This way, the installment will be reduced and always the same.  

But who is entitled to this benefit? It applies to credit agreements for permanent own housing made until March 15, 2023, with a variable interest rate and a payment term that extends for (at least) another five years.

And how to access this measure? The request can be made to the bank from November 2nd until the end of the first quarter of 2024, with the bank having 15 days to respond to the request, and the borrower then has one month to decide. The support will be applied over the following 24 months after the plan is approved.

However, note that the difference between the installment amount due and the one that will be paid will have to be refunded four years later at the end of the period that the installment will be fixed, spread out over the remaining loan period. It can also be amortized early, without having to pay any additional commissions or charges.

Expansion and simplification of credit bonus

The interest rate bonus on housing credit is already in effect for borrowers with incomes up to the sixth income bracket of the IRS, but a new government measure will extend this to more families and also simplify its calculation.

The bonus in question is based on a percentage of the additional interest paid by families with incomes up to 38,632 euros, with loans up to 250,000 euros (initial contracted amount).

The new measure means that the bonus becomes more broadly eligible, with support now granted to borrowers with a debt-to-income ratio higher than 35% when the benchmark interest rate exceeds 3%, while meeting the remaining income and credit criteria.

In addition, the calculation is now based on a 3% limit of the index. The portion of interest to be subsidized is now 100% when the effort rate is equal to or greater than 50%, and 75% when the effort rate is equal to or greater than 35% and less than 50%. The measure will also be extended until 2024.  

Extension of the suspension of amortization commissions 

Also, the suspension of bank commissions in the case of early repayments, another measure already in force, is now being extended.  

This suspension is a measure that, once imposed, has led to a significant increase in early refunds of housing loans, already exceeding six billion euros.

This measure, now seeing its deadline extended, allows families to continue repaying their loans early without having to pay commissions charged by banks.

How can a credit intermediary help?  

Because they are more complex topics, you may have difficulty understanding how the new measures work or how to request them from the bank.

So, this is where the role of a credit intermediary comes in. With the help of our services, you can:  

• Understanding how each measure works is the first step;  
• Find out if any can apply to your credit.
• Having a professional to communicate with the bank on your behalf, and to take care of all the bureaucracy that the process may entail;  
• Save on your housing credit, through a free service.

In summary, with the credit intermediaries of Poupança no Minuto, you can have access to a simple, personalized, fast service, without challenges and (above all) without costs. Contact us and save time, money, avoiding bureaucracies!