The mortgage market continues to boom and, despite the fact that housing prices are increasingly high in Portugal, the Portuguese are increasingly taking out loans to buy a house.
The increase in interest rates seen in recent years has created a new trend in the market and, unlike in the past, the Portuguese now almost always opt for a mixed rate when they take out loans to buy a house.
This is a trend that is seen both in the contracting of new loans and in the most popular product contracted with banks – the credit transfer. Although the numbers are clearly lower than they used to be, the Portuguese are still very interested in transferring their loans to other banks in order to obtain better conditions and pay less.
Regarding the insurance policies taken out, a component required by law to take out a mortgage loan, more than half of the associated insurance policies are taken out through the bank, with the most commonly taken out insurance policy being ITP (Total and Permanent Disability) at 68.6%.
On a final note, and as would be expected, more than 85% of people who take out a mortgage loan have a fixed-term employment contract and only 4% are sole traders.
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Source: Jornal Económico
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