# Portugal mortgage and insurance regulatory developments > Live situation record from CLSTR: https://clstr.news/situations/portugal-mortgage-and-insurance-regulatory-developments > Updated: 2026-10-20T06:00:23.000Z. Sources: 22. Developments: 2. The Portuguese Assembly of the Republic approved a proposal from the Juntos Povo (JPP) party to increase consumer freedom regarding mortgage-associated insurance. The resolution, which passed despite opposition from the PSD and CDS-PP parties, recommends that the government implement legislation allowing families to switch life or multi-risk insurance providers to cheaper alternatives without facing bank penalties, such as increased spreads or lost bonuses. The approved resolution specifically suggests that the government implement legislative measures within 90 days of publication. It further recommends that insurance substitution be possible during the contract term without early termination penalties, that the process remain free of charge, and that banks provide reasoned decisions within ten business days. The Iniciativa Liberal party abstained from the vote. Concurrently, mortgage holders with variable-rate loans face potential payment increases in November. While Euribor rates have shown recent fluctuations—with the six-month rate falling to 3.019% and the twelve-month rate decreasing to 3.262%—experts note that monthly installments depend on the comparison between new reference values and previous contract rates. Data from the Bank of Portugal indicates that 87% of new permanent residence mortgage loans in August were contracted at mixed rates, averaging 2.86%. ## Claims - An average worker in Lisbon must spend 54% of their net salary to rent a one-bedroom apartment. (disputed) - In Lisbon, rental costs can consume up to 82% of the average monthly income. (disputed) - The wealthiest 10% of households held 59% of the country's net wealth in 2025. (corroborated by 2 sources) - The bottom 50% of households held 6% of total net wealth in 2025. (corroborated by 2 sources) - The value of household-owned property rose from €473 billion in 2010 to €708 billion in 2025. (corroborated by 2 sources) - Portugal faces a housing deficit of between 300,000 and 380,000 units. (corroborated by 2 sources) - Mortgage holders with variable rates reviewing in November may face increased installments. (single source) - In August, 87% of new permanent residence mortgage loans were mixed-rate contracts. (single source) - The average interest rate for mixed-rate loans in August was 2.86%. (single source) - The average interest rate for variable-rate loans in August was 3.23%. (single source) - The six-month Euribor rate was set at 3.019%. (single source) - The twelve-month Euribor rate was set at 3.262%. (single source) ## Timeline ### 2026-10-20: Portugal housing crisis: rising rents and supply shortages Portugal faces a critical housing crisis with a deficit of up to 380,000 units and rents in Lisbon consuming 82% of average monthly incomes. 22 sources. https://clstr.news/cluster/portugal-mortgage-holders-face-potential-payment-increases-in-november ### 2026-10-01: Portugal Assembly approves proposal to ease mortgage insurance switching Portugal's Assembly approved a JPP proposal to allow mortgage holders to switch insurance providers without bank penalties, urging government legislative action within 90 days. 3 sources. https://clstr.news/cluster/portugal-assembly-approves-proposal-to-ease-mortgage-insurance-switching --- Cite as: Portugal mortgage and insurance regulatory developments. CLSTR, https://clstr.news/situations/portugal-mortgage-and-insurance-regulatory-developments