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What is the impact and what to do?

Regardless of the term of the Euribor rate that you have contracted on your Home Loan, It is certain that the monthly fee will go up soon. At the beginning of June, the 6-month Euribor moved into positive territory, where the 12-month Euribor had already been for a few months. Everything indicates that the period of 3 months will follow the same behavior.

This evolution in the European interbank market’s reference interest rates to positive values, after historical lows, represents a worsening of tens or even hundreds of euros in mortgage payments. In the financial markets, it is already anticipated that in the coming years, these interest rates will remain between 1% and 1.5% .

If your credit is indexed to a Euribor rate, anticipate the impact that the variation may have on the monthly payment of your loan. Simulate your case:

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Simulation result

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Enter values ​​above to see simulation results

Current Simulation
Euribor month to apply {[{ nomes_meses[result.mes_base.mes-1] }]}/{[{result.mes_base.ano}]} {[{ nomes_meses[result.mes_base.mes-1] }]}/{[{result.mes_base.ano}]}
Euribor to apply {[{ result.euribor | number:3 }]}% {[{ result.euribor_var | number:3 }]}%
TAN {[{ result.tan | number: 3 }]}% {[{ result.tan_var | number:3 }]}%
Fees {[{ result.juros | currency: ‘€’ }]} {[{ result.juros_var | currency: ‘€’ }]}
capital {[{ | currency: ‘€’ }]} {[{ result.capital_var | currency: ‘€’ }]}
installment {[{ result.prestacao | currency: ‘€’ }]} {[{ result.prestacao_var | currency: ‘€’ }]}

What to do to mitigate this rise in Euribor?

You can and should review the conditions of your home loan: spreadassociated products and other charges. The most important thing is to act as quickly as possible and not wait for the climb. This is because the spreads are still below 1%, in some cases, it is possible to contract spreads of 0.85%. But nothing guarantees that banks will continue to practice these values, in a scenario of worsening inflation.

There are several details you should consider in this renegotiation of terms. Pay attention to questions like:

  • It is worth choosing flat rate?
  • You can save more with insurance if you hire them out of the bank?
  • There are, in the new proposals, hidden costs that increase the monthly fee, such as bank commissions?
  • Which is maximum payment term who can negotiate with the execution of a new credit agreement?

To support you in clarifying and considering all these issues, count on the support of the Doutor Finanças team. As a credit intermediary, Doutor Finanças helps you make the best decisions regarding your home loan and without any associated costs. Our experts accompany you throughout the process and help you find the best offer for your home loan transfer.

Fill in the form below and one of our specialists will contact you shortly:

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