The implicit interest rate on mortgage loans stood at 3.228% in September, down 7.9 basis points from August. Since the peak recorded in January 2024 (4.657%), it has already fallen by 142.9 basis points. According to data released by the National Statistics Institute (INE), in contracts signed in the last three months, the interest rate fell from 2.883% in August to 2.873% in September.
Considering all contracts, the average installment stood at €393, one euro less than in the previous month, representing a decrease of €11 compared to September 2024. Of the installment amount, €195 (49.6%) corresponds to interest payments and €198 (50.4%) to amortized capital. This is the first time since May 2023 that the interest component has been less than 50%.
For home purchase financing, the most relevant type of mortgage loan, the implicit interest rate for all contracts fell to 3.226% (-7.5 bps compared to August).
In contracts signed in the last three months, the interest rate fell by 1.0 bp compared to the previous month, settling at 2.872%. In the same period, the average installment increased by €15 to €666, representing a rise of 7.1% compared to the same month last year.
In September 2025, the average outstanding capital for all contracts rose by €634 compared to the previous month, reaching €73,496. For contracts signed in the last three months, the average outstanding amount was €163,761, €2,440 more than in August.
Image credits: ©Marcel Strauss | Unsplash
Translated with DeepL.com (free version)
