One-Third of New Mortgages in Portugal Top €150K

More than one in three new mortgage contracts signed in Portugal this year exceeded €150,000, according to the latest data from the Bank of Portugal (BdP). The increase reflects a continued rise in house prices and a corresponding surge in borrowing.

In 2024, 34.8% of new mortgage loans were for amounts above €150,000, up from 30.3% in 2023. The average amount borrowed through new mortgages also increased, reaching €142,791 equating to 4.3% higher than the previous year. The BdP attributes this trend to the sharp rise in house prices, which climbed 9.1% over the same period. As property becomes more expensive, households are turning to larger loans to finance home purchases.

At the same time, the number of smaller mortgage contracts is decreasing. The proportion of loans under €90,000 fell to 30.5% in 2024 (down from 31.4% in 2023), while loans between €90,000 and €120,000 dropped from 20.2% to 17.4%.

Bank of Portugal links rise in mortgage values to increasing house prices.

The data, published in the BdP’s Credit Market Monitoring Report in early July, also shows significant growth in mortgage activity overall. An average of 10,447 new mortgage contracts were signed each month in 2024, marking a 26.6% increase compared to 2023. Monthly housing credit issuance rose to an average of €1.49 billion, up 32% year-on-year.

The report notes that these developments contrast with the contraction seen in the mortgage market last year, indicating a strong rebound in both demand for housing and lending activity.

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