Lisbon, April 21, 2026 (Lusa) – The implicit interest rate on mortgages rose in March for the first time in over two years, reaching 3.088% compared to 3.079% the previous month and 3.735% in March 2025, Statistics Portugal (INE) announced on Tuesday.

According to INE, this represents the first increase since January 2024, breaking a cycle of 25 consecutive months of reductions. The rate reflects the relationship between total interest due in a given month and the outstanding capital at the start of that period before repayment.

For contracts signed within the last three months, the rate was 2.830%, down 4.1 basis points from the 2.871% recorded in the preceding month.

In the "house purchase" category, the most significant in the mortgage sector, the implicit interest rate for all contracts rose to 3.086%, up 0.9 basis points from February. For contracts signed in the last three months, the interest rate fell by 4.8 basis points from the previous month to 2.823%.

The average monthly instalment for all housing loans reached €402 in March, €5 more than the previous month and €4 above the March 2025 figure. Interest payments account for €196 (48.8%) of the average instalment, while €206 (51.2%) corresponds to amortised capital.

The average instalment for contracts signed in the last three months increased by €5 to €700, a 15.9% rise compared to the same period last year.

Average outstanding capital across all contracts rose by €584 in March, to €77,078. For contracts signed within the last three months, the average outstanding amount stood at €175,838, up €3976 from the previous month.

By highlighting implicit mortgage interest rates, INE aims to provide indicators of the financial effort households and the state undertake for housing credit.

PD/RYOL // ADB.

Lusa