What is the effort rate, and what should mine be?
The debt-service ratio is the percentage of a household's monthly income used to pay loans. It is one of the indicators banks use to assess whether a new loan is affordable within the client's financial situation.
In Portugal, as a general rule, banks tend to view a debt-service ratio of up to around 30% to 35% as balanced, although this may vary depending on the borrower profile and income stability.
In practice, this means that, for every EUR100 of available income, up to EUR30 to EUR35 may be allocated to loan repayments.
Even so, it is not enough to look only at the mortgage instalment. You also need to account for other loans, fixed expenses and a buffer for unexpected events, because an approval that looks comfortable on paper may still put pressure on the real household budget.
Talk to a specialist to understand how far you can go safely and how to align the amount with your situation.
Want to understand your debt-service ratio based on your own case?
Talk to a specialist to assess your income, existing commitments and the repayment level that makes sense for you.