House installments are reduced in July for all terms

According to Deco/Dinheiro&Direitos modelling, the house deposit paid to the bank will fall in July across the board, with the biggest declines in contracts indexed to the 12-month Euribor.

According to the Lusa simulation from Deco/Dinheiro&Direitos, a client with a loan of 150 thousand euros for a term of 30 years, indexed to 12 months Euribor and with a “spread” (bank profit margin) of 1%, you will pay 773.46. euros since July, which represents a reduction of 32.41 euros compared to what you paid since July last year.

As for loans indexed to the six-month Euribor, the down payment for a house – under the same conditions – is reduced to €779.31, which is €22.24 less than the down payment paid since the last extension in January.

For contracts indexed to the three-month Euribor, the contribution is reduced by 17.98 euros to 780.21 euros.

These values ​​were calculated taking into account the June Euribor averages: 3.715% for six months, 3.725% for three months and 3.650% for 12 months.

The average Euribor rate considered for the purposes of considering a loan with a floating interest rate is equal to the rate for the month preceding the signing of the loan agreement.

Since the start of the year, people with mortgages have seen their monthly payments drop as their contract lengthens.

The Euribor rate began to fall in anticipation that the European Central Bank (ECB) would start cutting its interest rates in June, which is what happened.

At its last monetary policy meeting on June 6, the ECB cut three key interest rates by 25 basis points.

Thus, the fixed rate for the main refinancing operations decreased to 4.25%, the rate for the liquidity provision line decreased to 4.5%, and the rate for the permanent deposit decreased to 3.75%.

The next ECB monetary policy meeting will take place on July 18.