One in four first-time homebuyer loans in 2025 financed at 90%

Approximately 24% of new permanent home loans in 2025 were financed above 90%, driven by a state guarantee for young buyers under 35. The Bank of Portugal reported that this increase, which aligns with pre-macroprudential measure levels, is largely due to the state acting as a guarantor for up to 15% of transaction values. While the average loan-to-value (LTV) ratio for total new housing credit rose to 75%, loans under the state guarantee reached an average LTV of 99%. The report also highlights a trend toward longer loan maturities, with 35% of new contracts exceeding 35 years, and notes that 21% of borrowers were classified as high-risk based on debt-service-to-income and LTV ratios.