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Portugal Tightens Mortgage Criteria with 45% Debt Service Ratio Cap Effective August 2026
Portuguese banks enforce stricter mortgage rules from August 2026, including a 45% maximum debt service ratio and lower exception margins for lenders.
Starting August 1, 2026, Portuguese banks will implement stricter mortgage application rules, reducing the maximum debt service ratio to 45% and lowering exception margins for lenders. This follows a decline in housing loan demand during Q2 2026, attributed to high property prices and shifting borrower behavior. The measures aim to mitigate risks in the housing market while maintaining access to credit for qualified applicants.