Glossary
Debt-service ratio (taxa de esforço)
The share of net income going to loan payments. Banco de Portugal limit: 45%, with a rate shock.
The bank doesn't use today's rate: it adds +0.5 points (term ≤5 years), +1 (5–10) or +1.5 (>10) and tests the resulting payment. If the loan ends after age 70, income counts at 80%.
Banks may exceed the limit on 10% of new loans per half-year. Don't count on it.
Related
General information based on current legislation. Not tax or legal advice.