Home installments will increase very sharply: in a year, providing a loan of 150 thousand euros can increase up to 45%, as indicated on Monday by “CNN Portugal” – in less than two months, the European Central Bank (ECB) raised rates The benchmark interest is from zero to 1.25%, an increase of 0.75 percentage points in the past week.

After all, for a loan of 150,000 euros, for 30 years, indexed to Euribor for a period of six months, it goes from a payment of just over 454 euros in April of this year to almost 660 euros in April 2023. And that’s in a conservative environment .

“We believe we are far from the rate that we hope will lead to inflation returning to the medium-term target of 2%,” confirmed Christine Lagarde, President of the European Central Bank, stressing that there will be further rate increases. “There can be more than two ascents, but it will probably be less than five. I leave it up to you if there are two, three or four,” he noted.

The European Central Bank has already scheduled its upcoming meetings. Two later this year, in October and December, and two more early next year, in February and March — if interest rates rise 0.25 percentage points at each meeting, what will the effect be?

In the same example of a loan of 150 thousand euros for 30 years, the monthly installment, in October of last year, was 447 euros. The promised adjustment in October could increase the premium to 580 euros per month, a difference of more than 125 euros per month. At the December meeting, while maintaining the same increase, the premium will rise to 660 euros, plus 200 euros per month depending on the October values.