Mortgage loans in Portugal have been getting more expensive for four months: The average monthly installment increased to 418 euros

The cost of housing loans in Portugal is on the rise again. According to August 2026 data from Instituto Nacional de Estatística (INE), the average implicit interest rate in existing housing loan contracts increased to 3.162 percent.

This marks the fourth month in a row that interest rates have risen.

The average monthly mortgage installment paid by households increased by 4 euros compared to July, reaching 418 euros. The average installment is 24 euros higher than a year ago.

The average installment for new loans is 744 euros

The picture is more striking when we look at the mortgage loan agreements signed in the last three months.

The average monthly installment in this group increased by 13 euros to 744 euros in August. According to INE, this figure means an increase of 14.3 percent compared to the same period last year.

However, the average interest rate in contracts made in the last three months remained at 2,910 percent in July.

These two indicators need to be distinguished: 3.162 percent refers to the implicit average interest rate on all existing mortgage loans, while the terms of new contracts may show a different picture.

Half of the average installment goes to interest

According to INE data, interest payments constituted 50 percent of the average mortgage loan installment in August.

This rate is especially important for households with high loan balances and affected by interest rate changes. It shows that the cost of financing is still significant.

Euribor movements continue to be critical for mortgage holders in Portugal. However, each debtor's installment should not be expected to change at the same rate; Whether the loan agreement has a fixed, variable or mixed interest rate, the Euribor maturity used, the spread, the remaining principal and the re-pricing date of the agreement directly affect the amount to be paid.

August inflation is also 3.3 percent

The increase in mortgage loans comes at a time when the overall cost of living for households in Portugal is under pressure again.

According to INE's separate inflation data, consumer prices increased by 3.3 percent annually in August 2026. A significant part of the increase was due to the increase in diesel prices.

Therefore, some households paying a mortgage face higher costs in terms of both loan costs and daily expenses in the same period.

Resources

Instituto Nacional de Estatística (INE), 18 September 2026

https://webinq.ine.pt/home

ECO, 18 September 2026

https://eco.sapo.pt/2026/09/18/taxa-de-juro-no-credito-a-habitacao-sobe-pelo-quarto-mes-seguido-para-3162/