Property: Debt to income news in Portugal

Banco de Portugal prepares to reduce the debt-to-income ratio (video)

RTP Madeira24 May

New rules for debt-to-income ratio in mortgage loans are now in effect

Banks should only approve a loan if the debt-to-income ratio for all of a client's loans does not exceed 45% of their net monthly income, whereas until now, the percentage was 50%.

New rules for debt-to-income ratio in mortgage loans come into force

The new guidelines from the Bank of Portugal (BdP) for granting mortgage loans come into effect today, providing for more demanding rules regarding the application of the debt-to-income ratio for loan approvals. The new recommendation replaces a previous one from July 1, 2018, establishing as a rule that banks only...

New rules for debt-to-income ratio in mortgage loans come into force today

A new recommendation establishes as a rule that banks should only approve a loan if the debt-to-income ratio of all the client's loans does not exceed 45% of their net monthly income.

Housing credit. Will there be changes to the debt-to-income ratio?

Vítor Costa, executive editor of CNN Portugal, explains what could change in housing credit if the recommendation to lower the debt-to-income ratio from 50% to 45% moves forward.

Banco de Portugal announces stricter rules for mortgage credit

The governor of the Banco de Portugal announced today that a tightening of credit rules will be proposed, including a more demanding debt-to-income ratio that customers will have to meet for mortgage loans.

Governor of the Bank of Portugal confirms tightening of housing credit and says it is time for recommendations to be binding

Álvaro Santos Pereira used the release of the Financial Stability Report to confirm the reduction in the housing credit debt-to-income ratio, as reported by Expresso in mid-May. The debt-to-income ratio will fall from 50% to 45%. Loan maturity terms will be simplified.

Álvaro Santos Pereira: tightening of household access to housing credit must be "binding"

Álvaro Santos Pereira, Governor of the Banco de Portugal (BdP), argues that the proposed tightening of the debt-to-income ratio for housing loans—reducing it from the current 50% to 45%—should be a binding rule rather than a mere recommendation. He believes this is necessary to protect financial stability and prevent household over-indebtedness amid rising interest rates and economic volatility. The central bank is currently in discussions with financial institutions to make this limit mandatory, while also considering potential adjustments for younger borrowers and reviewing other macroprudential rules, such as loan maturities and exceptions.

ECO Quiz: Did the Bank of Portugal increase the maximum debt-to-income ratio for mortgage loans?

If you are reading this news in an app, access the quiz here. The Bank of Portugal (BdP), an institution led by Álvaro Santos Pereira, has decided to change the maximum debt-to-income ratio for mortgage loans. At the same time, the BdP is also considering adjustments to the exceptions provided for banks' overall portfolios. Currently, 10% of...

Banco de Portugal reduces maximum debt-to-income ratio for mortgage loans

The Portuguese central bank has lowered the maximum limit for the debt-to-income ratio applicable to new housing credit agreements.

MSN21 May

Banco de Portugal reduces maximum debt-to-income ratio for mortgage loans to 45%

Due to the public guarantee supporting young people in purchasing homes, the Banco de Portugal (BdP) will reduce the maximum debt-to-income ratio for mortgage loans from 50% to 45%, a decision already being communicated to the banking system, reports Jornal de Negócios (paid access). The change means a...

Today in the news: debt-to-income ratio, AI gigafactory and Court of Auditors

The Bank of Portugal will reduce the maximum debt-to-income ratio for mortgage loans from 50% to 45%. The major Iberian project aiming to install an artificial intelligence gigafactory in Sines will not, after all, include a redundancy centre in Abrantes, where the former Pego coal-fired power plant operated. Get to know the news...

BCP President applauds reduction in maximum debt-to-income ratio

Stricter requirements for credit granting are considered 'positive', according to the BCP president.

07:00 BCP CEO advocates for reducing the debt-to-income ratio for mortgage loans

The executive president of BCP argues for a decrease in the effort rate required for housing credit applications.

Buying a house will become more difficult: Banco de Portugal wants to adjust the debt-to-income ratio and the impact could reach thousands of Portuguese people

The current debt-to-income ratio is at 50%, but changes could cause it to fall to 40%

Banco de Portugal wants to tighten mortgage rules and lower the debt-to-income ratio

The Portuguese central bank aims to implement stricter regulations for home loans and reduce the maximum percentage of household income allocated to debt repayments.

TVI15 May