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Portugal's central bank tightens mortgage credit rules, setting 45% effort limit
Effective 1 August 2026, the Banco de Portugal introduced stricter guidelines for mortgage lending. The maximum debt‑service ratio for all loans was reduced from 50% to 45% of a borrower’s net monthly income. Banks may exceed the 45% threshold only in limited exceptions that cannot total more than 10% of the credit volume granted in a semester. The new rules also simplify loan‑term limits: borrowers up to 35 years old may obtain a maximum maturity of 40 years, while those older than 35 are capped at 35 years.
BPI chief executive João Pedro Oliveira e Costa warned that tighter credit rules will not solve Portugal’s housing crisis. He argued that the country must build between 80 000 and 100 000 new homes annually over the next five to six years to rebalance supply and demand, noting that high house prices are the main driver of youth emigration. The same executive reiterated that no additional policy measures will stabilise prices without a substantial increase in construction.
Other industry voices echo the urgency of expanding housing stock, while recent data show a sharp rise in rental‑market activity, with several districts reporting over 150% growth in enquiries per listing during the second quarter of 2026.
Entities
BPI (Banco Português de Investimento) · Banco BPI · Banco de Portugal · Bank of Portugal · Coimbra · Foreign investors · João Pedro Oliveira e Costa · Portugal · Portuguese housing market
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Banco de Portugal lowered the maximum mortgage debt‑service ratio from 50% to 45% of net monthly income, effective 1 August 2026. eco.sapo.pt · www.iol.pt
- [○ 1 SOURCE] BP I CEO João Pedro Oliveira e Costa said no new policy measures will stabilise housing prices without a substantial increase in construction. dinheirovivo.dn.pt
- [● 3 SOURCES] Banks may approve mortgages with an effort ratio above 45% only in exceptions that cannot exceed 10% of total credit volume per semester. eco.sapo.pt · www.iol.pt
- [● 3 SOURCES] For borrowers up to 35 years old, the maximum mortgage maturity is 40 years; for borrowers over 35, it is 35 years. eco.sapo.pt · www.iol.pt
- [○ 1 SOURCE] BPI CEO João Pedro Oliveira e Costa said Portugal must build 80 000–100 000 new homes per year for the next five to six years to balance the housing market. www.forbespt.com
- [○ 1 SOURCE] The BPI CEO said the main cause of youth emigration from Portugal is high housing prices relative to wages. www.forbespt.com