Credit intermediaries now dominate Portugal’s mortgage sector, arranging the majority of home loans issued in 2024. According to the Bank of Portugal (Banco de Portugal), more than half of all mortgage loans (56 percent) – and 57% of the total amount granted – were handled through intermediaries.
What Changed in Credit Intermediaries in 2024 - and Why Does It Matter?
In 2024, the intermediaries accounted for more than half of the number and volume of granted loans in Portugal. The Bank of Portugal highlights that 56 percent of the more than 125,000 contracts signed and 57 percent of the €17.9 billion that these loans total were granted through credit intermediaries.
A credit intermediary must be registered and authorized by the Bank of Portugal and cannot lend itself. The Bank of Portugal enforces macroprudential LTV (Loan-to-Value, DTSI (Debt-Service-to-Income), and maturity limits that determine the eligibility of borrowers.
The rise in intermediaries in Portugal arranging mortgage loans reflects borrowers’ greater reliance on professional expertise to navigate the interest rate landscape, lending criteria, and a wide range of mortgage products, which include fixed, variable, and mixed-rate mortgages.
Intermediaries act as brokers between the property buyer and the bank, helping clients to compare offers, negotiate conditions, and ensure a smooth application process. Working with a mortgage broker can save you time and improve buyer’s chances of securing favorable terms for their mortgage in Portugal.
How many mortgages used intermediaries?
There were 70,000 housing loans published in 2024 that involved intermediaries, with an average total value of more than 10 billion euros, according to the Jornal de Negócios, which relies on the 2024 credit market monitoring report published by the Bank of Portugal.
How fast is the sector growing?
There are currently more than 6,1000 registered credit intermediaries, compared with 5,893 a year earlier. This increase points to continued confidence in the profession and the sustained demand from both lenders and buyers.
- Banks benefit from the network of intermediaries who then connect them with potential borrowers
- Borrowers get greater clarity and transparent advice on the competitive and ever-evolving mortgage landscape to ensure the best deals.
Credit Intermediaries Now Handle Over Half of Portugal’s Mortgage Loans
Intermediaries now handle more than half of Portugal’s mortgage loans (56 percent), highlighting that credit intermediaries are now more the norm when securing financing in Portugal.
What does the future hold for Portugal’s mortgage market?
In the future, it is likely that intermediaries will remain central to the mortgage ecosystem. For those seeking to take out mortgages in Portugal, intermediaries allow buyers to secure better loan deals, while there are also clear benefits for banks to expand their client base.
With continued economic uncertainty and shifting interest rate policies, demand for professional, independent guidance is expected to remain, or even continue to increase, in the coming years.
Credit intermediation has become a cornerstone of Portugal’s housing financing system, shaping how lenders and borrowers interact in a dynamic and constantly evolving market.
