Interest Moratorium: To join or not to join?

The moratorium that states the fixing of house loan for two years and which became official on November 2nd has caused a lotof talking. After all, is it good for the customer to subscribe to this measure or not?

If you want to postpone the unavoidable… Yes. If you want to save… No! We explain why:

The reduction of the house loan for 2 years is not that good as it seems. The temporary fixation of the house loan comes as a support measure, but speaking in long term it can be penalizing.

This happens because in this renegotiation, the amount that remains unpaid during the 2 years will have to be repaid later, with interest. An immediate relief but which translates into worsening later on.

Conditions and eligibility

Contrary to what many people think, not all customers are entitled to the entire “discount” stipulated. The justification given by Banco de Portugal to Jornal Expresso clarifies that “the possibility of there being customers who don't fully benefit from the reduction arises because the amount equivalent to 70% of Euribor may not be enough to pay off all the interest associated with the contract”.

Therefore, to avoid surprises and effectively lower your monthly house loan without resorting to a moratorium, Maybe you should consider transferring your Home Loan to another bank. An easy and cost-free process that allows you to achieve greater savings.

In any case, whatever your decision, always seek specialist advice when considering your options. Consulting financial professionals to assess your specific situation will help you make informed decisions about your Home Loan.

If you decide to proceed with the interest moratorium request, please be aware that you must do it until march 31st, 2024, but make sure you are eligible for this measure: you need to have a house loan to purchase a permanent home dated by March 15, 2023.

If, on the other hand, you want to analyze other options, namely credit transfer, contact us so that we can analyze your situation and help you with this process.

Go Crédito

GO Crédito is a company specialized in credit intermediation, authorized and supervised by the Bank of Portugal. We provide credit intermediation and consultancy services quickly and effectively.