Housing Credit in Portugal Surges 8.1% to €106.3 Billion
The total outstanding value of housing loans in Portugal reached €106.3 billion in July 2025, an 8.1% increase compared to the same month in the previous year. According to the latest figures from the Bank of Portugal, this represents the most significant annual growth in the mortgage market since August 2008, signaling a strong recovery in demand for property financing.
This rebound in lending activity follows a period of fluctuating interest rates. An initial rise in rates had temporarily cooled the market, but a subsequent decrease has spurred a new wave of credit applications. Banking institutions have also resumed competitive practices, engaging in so-called “spread wars” to attract new mortgage clients. Ricardo Guimarães, director of the real estate intelligence firm Confidencial Imobiliário, noted that these factors have combined to stimulate the market.
A fundamental shift in the mortgage acquisition process has also been observed with the rise of Credit Intermediaries (IdC). Francisca Guedes Oliveira, an administrator at the Bank of Portugal, stated in a recent address that these intermediaries now account for “more than 50% of the housing credit marketing channel.” This marks a structural change in how loans are originated and distributed in the country.
These intermediaries provide a crucial service by conducting a preliminary risk analysis for potential borrowers. “This allows a buyer to first know the amount they have to spend and only then look for a house that best fits that amount,” explained Ricardo Guimarães. He emphasized that this approach is “healthy” for the market, as it helps to prevent household over-indebtedness and reduces the overall risk profile for the banking sector.
The operational model of these intermediaries is heavily reliant on technology. Ricardo Sousa, CEO of Century 21, remarked that “technology allows for reducing operational costs and making the process faster, safer, and more transparent.” Through digital platforms, intermediaries can efficiently access and compare loan proposals from a wide range of banks, streamlining the search for favorable financing terms for consumers.
In addition to technological efficiency, these firms provide expertise in financial documentation and processes. “The IdC master the financial language,” Guimarães added, explaining that they assist in preparing applications and help clients navigate complex requirements, thereby reducing the likelihood of rejection due to formal errors. They also assist clients in analyzing future scenarios, such as the impact of interest rate fluctuations on their mortgage payments.
The Bank of Portugal has acknowledged the role of these intermediaries in promoting financial literacy, a key objective of its National Plan for Financial Formation (PNFF). By guiding borrowers through the complexities of mortgage products, these firms contribute to more informed consumer decisions. The central bank continues to enhance its communication strategies to improve public knowledge of banking products and services.
The growing prominence of credit intermediaries is a central topic of discussion within the financial industry. A conference organized by Century 21, with which Expresso is a media partner, is scheduled to take place to debate the future of housing credit, featuring representatives from the Bank of Portugal and the country's leading banks, including Millennium BCP, Santander, and Caixa Geral de Depósitos.
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