What is the effort rate, and what should mine be?

What the effort rate is

In Portugal, banks call it the taxa de esforço. It is often translated as "effort rate". In plain English, it is your affordability ratio.

It is the share of your monthly income that goes to loan repayments. It counts the home loan and every other loan, such as a car loan or a personal loan.

The income that counts is your net income. That is what reaches your account, after tax and Social Security. If two of you are buying, both incomes and both sets of loans are added together.

In the bank's paperwork you may see it as DSTI. It is the technical name for the same thing.

How it is worked out

Add up the monthly repayments on all your loans. Divide by your net monthly income. Multiply by 100.

An example. You take home €2,000 a month and the repayment on the home is €600. You have no other loans. The sum is 600 ÷ 2,000 = 0.30. Your affordability ratio is 30%.

Now add a car loan of €200 a month. Your repayments add up to €800. The sum is 800 ÷ 2,000 = 0.40. Your affordability ratio goes up to 40%. These are example figures.

What yours should be

There are two numbers to know.

45% is Banco de Portugal's limit. It comes from the Macroprudential Recommendation. It applies to loans assessed from 1 August 2026. Before that, the limit was 50%. Source: Banco de Portugal press release of 2 July 2026.

35% is what FINOVA recommends. It is not a Banco de Portugal rule. It is our recommendation, so you have money left for other costs and for surprises. It is also the "recommended" figure in our calculator.

In the example above, 30% is within the recommended figure. With the car loan, 40% is above recommended, but within Banco de Portugal's limit.

The bank works it out with a higher interest rate

The bank does not only use today's repayment. If the interest rate is variable or mixed, it works out the repayment as if the rate went up. This is part of Banco de Portugal's recommendation.

There is another rule for anyone who will be over 70 when the loan ends. In that case, the bank counts on a lower income, unless the person is already retired.

So the bank may reach a higher affordability ratio than you do. The difference between rate types is in the guide Fixed, Variable or Mixed Rate: what is the difference? Our calculator shows both figures: today, and if the interest rate rises.

Can I get a loan above 45%?

It can happen, but it is an exception. The limit is a recommendation, not a law. Banks must follow it or explain to Banco de Portugal why they did not.

Each bank may go above the limit on up to 10% of the credit it grants each half-year. Do not count on that exception when you plan your purchase.

How to bring your affordability ratio down

• Put down a larger deposit. You borrow less and the repayment goes down. See Do I always need a 10% down payment?
• Choose a longer term. The repayment goes down, but you pay more interest in total. The longest term depends on your age: 40 years if you are 35 or under, 35 years if you are older.
• Pay off other loans before you apply for the home loan.
• Compare banks. A lower bank's margin (spread) means a lower repayment. See What is the Spread, and how can I reduce it?

How to find yours

FINOVA's mortgage affordability calculator works out your affordability ratio. It compares it with the two figures: 35% and 45%. From there, we look with you at the amount and the term that make sense for your case.

Sources

• Banco de Portugal — Press release of 2 July 2026: "Banco de Portugal reviews its Macroprudential Recommendation on new credit agreements for consumers"
• Banco de Portugal — LTV, DSTI and maturity limits

Sources checked on 19 September 2026.