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The Governor of the Bank of Portugal announced today that a tightening of credit rules will be proposed, including a more demanding debt-to-income ratio that clients must meet when applying for a mortgage.
During the presentation of the financial stability report in Lisbon, Álvaro Santos Pereira stated that the banking regulator and supervisor will propose lowering the maximum debt-to-income ratio from 50% to 45%.
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Until now, when granting a mortgage, banks had to ensure that clients did not spend more than 50% of their net income on debt repayments, and the regulator now wants to reduce that proportion, which represents a tightening of the rule for accessing financing.
