Mortgage credit: Early repayment fee commission will continue to be suspended in 2025.

In 2025, you will still be able to amortize a variable rate mortgage without a commission.

Repaying a home loan will continue to be exempt from early repayment fees in 2025 when it involves a contract with an interest rate linked to a variable rate, such as the Euribor (any of the Euribor).

After the proposal of the Socialist Party (PS) was rejected during the vote on the State Budget for 2025, there was a change that extends for one more year the regime that was in force in 2024 (and also in 2022 and 2023). Before trying to include this extension in the State Budget, the PS already had a specific initiative on the subject in the legislative process in the Assembly of the Republic, which was approved in the Budget and Finance Committee, with votes against from Chega, but abstention from the PSD.  

With this approval, the commission exemption for early repayment of variable rate mortgage credit is extended until December 31, 2025. In practical terms, banks are prohibited from charging 0.5% of the amortized value, that is, €5 for every €1,000 of repayment.

However, this is not the structural change that the PS had initially proposed in the State Budget, which suggested the elimination of early repayment fees only in fixed-rate contracts. The issue was postponed for another year, after strong opposition from the Portuguese Banking Association, leading the PS to revise its initial proposal, which aimed at the total elimination of these fees.

Regarding contracts with fixed rates, despite the prohibition of charging fees in contracts with variable rates, banks are still able to charge up to 2% on the amortized amount in contracts with fixed rates.

In contracts with mixed rates, the early repayment commission will depend on the current rate at the time of repayment. If the credit is still under the fixed rate, a 2% commission is applied (at the bank's discretion). If the variable rate is already in effect, until the end of 2025, banks cannot charge any commission for early repayment.

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