Article · MATTERS No. 4
Housing credit: a new safety margin
The rules changed on 1 August
Banco de Portugal lowered the recommended limit for financial effort and simplified maximum loan terms. The change makes real purchasing capacity even more decisive.
Since 1 August 2026, new credit agreements assessed by banks have been subject to a revised macroprudential recommendation. The most direct change concerns the DSTI ratio: the share of income allocated to servicing total debt now has a recommended ceiling of 45%, down from the previous 50%.
Maturities have also changed. The recommended maximum term is 40 years for borrowers aged up to 35 and 35 years for those over 35. Where a loan has more than one borrower, the age of the oldest person is used.
These rules do not automatically determine how much each household can borrow. Banks continue to assess income, employment stability, other debts, available deposit and the risk of the transaction. However, the new framework reduces the room for proposals at the limit of financial capacity.
For those looking for a home, the practical consequence is simple: the advertised price matters less than the sustainable monthly payment. The decision should begin with the monthly budget and only then move to the property. For housing developers, the conclusion is equally clear: types, areas and prices must correspond to demand that can secure financing, not merely demand that expresses interest.
The new rule does not solve the shortage of homes. It does, however, introduce an additional filter in a market where prices remain high. Access to housing will depend even more on the relationship between product, price and financial capacity.