We live in a historic moment with the Euribor at minimum. Know that care be to prevent the provision of home threatens your budget when you resume normalcy in the rates.

As the economic situation in the country gives signs of improvement, more and more Portuguese resort to credit to buy the house. In the first eight months of the year, families have hired a total of 2,387 million euros in new loans for house purchase, 68% more than in the same period 2014.

The historically low level of indexing in parallel with it that banks show easing the criteria required of customers (especially ‘spreads’ lower) hold the greatest appetite for mortgage loans. However, you must bear in mind that we live an extraordinary reality. For those who want to hire a credit currently, there are precautions to prevent the minimum rates of Euribor become trapped in the future.

For example, those who make a housing loan of 200,000 euros with a ‘spread’ of 1.95% (average of the ‘spreads’ minimum current of the ten largest banks) for a period of 30 years, will be payable to bank a monthly installment of 736 euros, taking into account the current average monthly Euribor six months. However, in an extreme scenario, if this reference rate to rise in the long run for the highest value ever reached during its history – 5,448% in October 2008 – the value of providing almost doubled to 1,384 euros.

It is for this reason that Susana Albuquerque, coordinator of financial education daASFAC, advises that “before hiring should always predict the worst case scenario.” In particular, teremconta the rate of increase as a result of rising indexes.

This expert points out that this information is already given to customers by banks when they present them the credit proposal: namely one or two climb rate scenarios. The opinion of Filipe Garcia, an economist at the IMF, along the same lines, stressing that, although each serumcaso case, the trend of the Portuguese goes towards hiring the benefit which can pay at baseline.

“The board is of course no ‘to touch’ the provision to who can afford today,” recommends economist, noting that in some cases, hiring an unemployment or incapacity for work may confer additional protection despite endear the process . Respect the maximum margin of 30% weight of credits in the budget is another key rules to prevent any slippage. One of the alternatives to minimize exposure to changes in Euribor may also undergo opt for a fixed rate loan. Susana Albuquerque considers that, depending on the personal and financial objectives of those who ask for the credit and the prospect of having evolution of your monthly income “, this may be a good option.

“Fixed rates are higher but guarantee us sure about that charge. If the total value of the benefit or benefits with credits is at 30%, is quite advisable emminhaopinião “defendeaespecialista.

Analysts expect, however, that while the ECB keeps the stimulus measures and the reference rates for minimum, families should continue to benefit from monthly charges with the house historically low. “Nothing indicates that the Euribor rise over time, however. The ECB is preparing to raise monetary expansion and probably cut the deposit rate.

The Euribor have been falling consecutively, and the future of Euribor three months indicate negative rates until December 2017, “argues economist.

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