This Thursday the government presented three new measures aimed at combating the housing crisis. At the Council of Ministers, the Minister of Finance announced the reduction and stabilization of payments on mortgage loans, strengthening interest subsidies and extending the suspension of the early repayment commission.
The government is also maintaining the suspension of fees for early repayment of home loans.
Fernando Medina called the housing crisis “the biggest challenge facing families” and stressed the importance of new executive action.
“This is a very intensive government effort in several areas,” explains Fernando Medina. “We are committed to easing the burden that people pay today, but in a completely responsible way,” he assures.
Concerning installment loan brake mechanismThe Minister of Finance explains that for two years families will be able to request an offer with a permanent benefit lower than the current one. If rates increase, borrowers will be able to return to the permanent installment plan.
The measures, which will cover about a million people, will ensure that the interest rate does not exceed 70% of the index (Euribor), as well as expanding support for interest subsidies on home loans from 720 to 800 euros.
Portuguese will be able to submit credit check requests to the bank from November 2, Medina says.
A interest subsidy will apply to families with an income of up to 38,632 euros per year (Sixth step), while Housing loans were reduced to 250 thousand euros.
Over the next year the subsidy must be applied whenever the interest rate exceeds 3%.
Above extension of the commission for early repayment, Medina decided not to give a date forecast just yet.
Installation of installment credit
A request to establish an installment plan for a home loan for two years can be submitted by customers to banks until the end of the first quarter of 2024, giving them 15 days to respond.
The government estimates that one million families could be covered by this measure. “We estimate that the number of families affected could reach 900 thousand, one million,” Fernando Medina said.
Benefit reduction
Families will be able to apply to the bank for a fixed payment on a housing loan for a period of two years, and the measure will apply to loans issued until March 15, 2023.
The measure will allow families to ask the bank to “make an offer of a constant and lower contribution over two years,” the minister said, explaining that this reduction is achieved by ensuring that during this period the implicit interest rate does not exceed 70% of the six-month rate Euribor.
Rules for accessing the facility will mean that “almost all variable and mixed rate home loans in the country” can be covered, he said, clarifying that all loans can join, even those that have recently been agreed or are subject to transfer . one bank to another.
Author: morning Post This Lusa
Source: CM Jornal
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