What is the effort rate, and what should mine be?
The effort rate is the share of your monthly income that goes to repaying credit. The Bank of Portugal sets a reference cap of 45%; in practice, staying near 35% is the comfortable zone.
In this guide
What the effort rate is
It is the share of the household's net monthly income used to repay all credit — the mortgage and anything else. Banks use it to judge whether new borrowing is affordable. In banking models it appears as DSTI (debt service-to-income).
The Bank of Portugal cap and the comfort zone
The Bank of Portugal's macroprudential recommendation sets a reference cap of 45% for new loans, in force since 1 August 2026. Banks may go above it on up to 10% of the credit they grant each half-year, justifying each case. But the regulatory cap is not the same as a comfortable figure: in practice, keeping your effort rate between 33% and 35% — ideally below 30% — leaves room for the unexpected and makes approval more solid.
Why the figure on paper is not enough
An approval that looks comfortable on paper can still strain the real budget. Factor in other loans, fixed costs and a margin for surprises. A home should not swallow a family's financial breathing room.
How to find yours
FINOVA's affordability calculator works yours out in seconds, against these limits. From there, we tune the amount and term to your real situation.
Worked example
A household with €2,000 net a month and a €600 mortgage payment, no other loans, has a 30% effort rate (600 ÷ 2,000). Add a €200/month car loan and it climbs to 40% — past the comfort zone, though still within the Bank of Portugal limit. (Example figures.)
Sources
Susana Vasconcelos
- Intermediária de crédito autorizada pelo Banco de Portugal n.º 0008496
- Mais de 10 anos na banca