Simulator - Euribor Variation

Euribor (Euro Interbank Offered Rate) is the reference interest rate for the European interbank market, used as the index for most variable-rate mortgage loans in Portugal. It is set daily and varies according to financial market conditions and the monetary policy of the European Central Bank (ECB).

In a variable-rate mortgage loan, the monthly instalment is calculated based on Euribor (usually 3, 6 or 12 months) plus the bank's spread. When Euribor rises, the instalment increases; when it falls, the instalment may decrease. The instalment is reviewed periodically, according to the index agreed in the contract.

The instalment may increase mainly due to a rise in Euribor, which is reflected in the variable interest rate of the loan. Other reasons may include a review of the spread, changes to associated insurance or changes to the contract conditions. If the instalment has risen significantly, it may be worth analysing a credit transfer or renegotiation with Maxfinance.

The instalment may decrease when Euribor falls, when there are favourable changes to the credit conditions (for example, renegotiation of the spread) or when part of the outstanding capital is repaid. A fall in Euribor is reflected in the instalment on the next review date scheduled in the contract.

In some contexts, a fixed rate can bring greater predictability and protection against future rises in Euribor, especially during periods of market uncertainty. However, the fixed rate is usually higher than the variable rate at the time of contracting. Maxfinance analyses your profile and market outlook to recommend the most suitable regime.