How much will my mortgage payment be in Portugal?
| Interest rate (TAN) | 4.153% |
| Total interest | €179,679 |
| Total paid by the end | €379,679 |
Debt-to-income ratio: 38% of income. Acceptable, but tight.
How it was calculated
The interest rate is Euribor plus the bank's spread. The payment is calculated to repay the loan in equal instalments by the end of the term, and it changes whenever Euribor changes.
It does not include life and home insurance or fees. The debt-to-income ratio shows how much of your income goes to the payment; Banco de Portugal recommends that, as a rule, it should not exceed 45% (since August 2026).
Example: you borrow €150,000 over 30 years, with 6-month Euribor at 3.043% and a 1% spread. The interest rate is 4.043% and the payment is €719.85 a month. By the end you pay €109,145 in interest, or €259,145 in total. With a net income of €2,000 a month, your debt-to-income ratio is 36%.
Frequently asked questions
How is the mortgage interest rate calculated?
It is Euribor (3, 6 or 12 months) plus the bank’s spread.
What is the maximum debt-to-income ratio?
Banco de Portugal recommends that, as a rule, payments should not exceed 45% of net income (since August 2026).
What is the difference between fixed, variable and mixed rates?
With a variable rate, the payment changes with Euribor. With a fixed rate, it stays the same for the whole agreed period. With a mixed rate, there is a fixed rate at the start, often for a few years, and then it becomes variable.
What is TAEG on a mortgage?
TAEG is the annual percentage rate of charge. It combines the interest (the TAN) with the other costs of the loan, such as fees and required insurance. That is why it is higher than the TAN, and it lets you compare offers from different banks.
Do I have to take out insurance with the lending bank?
No. The bank can require life and home insurance, but you can take them out with another insurer, as long as they have the cover the contract requires. This insurance is not included in the payment worked out here.