The Bank of Portugal (BdP) is preparing an important change to its Macroprudential Recommendation that will directly affect anyone planning to take out a mortgage in Portugal. According to reports in the financial press, the maximum stress ratio (DSTI) is set to drop from 50% to 45% — and it will apply to mortgages in general, not only to young buyers using the State-backed guarantee.
What is the stress ratio (DSTI) and why does it matter?
DSTI — Debt Service-to-Income — measures the share of a household's net monthly income that goes towards all loan repayments. It's one of the main indicators banks use to assess whether a client can afford a new loan.
- Up to 35% — considered a comfortable profile by banks
- Between 35% and 50% — acceptable zone, with closer analysis
- Above 50% — currently outside the maximum limit set by the BdP
What triggered this change?
The trigger was the introduction of the 100% State-backed guarantee for young buyers accessing mortgages. By removing the need for a down payment, the measure led banks to extend credit to clients with higher stress ratios, since default risk was covered by the State.
The BdP chose not to create an isolated rule only for State-guaranteed loans. The intent appears to be a global adjustment of the Macroprudential Recommendation, applying the new limit to every new mortgage application.
When does the new rule take effect?
The financial press reports the measure should take effect "by the start of the summer" — most likely between late May and June 2026. The expected sequence:
- The BdP issues or reformulates the Macroprudential Recommendation
- Banks receive internal technical guidance
- Each bank updates its scoring models and approval engines
- The new 45% maximum DSTI applies to every new application
Be aware: banks often move ahead of the regulator. Some risk departments may already be cutting exceptions, reducing flexibility in their analysis and tightening criteria before the measure formally takes effect.
What changes in practice for buyers?
- Lower buying power for households with tighter incomes
- Less margin for the exceptions banks could previously apply
- More weight on documented net income and professional stability
- "Stretched" applications will be harder to get approved
- Greater role for solutions such as adding co-borrowers, consolidating debt or reducing existing commitments
Are already-approved applications protected?
In general, applications that already have a formal approval or an issued FINE tend to remain under the previous rules. However, applications still "under review" when the measure takes effect may fall under the new framework — depending on each bank's internal policy.
Is there a window of opportunity?
Yes. For clients whose case is particularly sensitive to the stress ratio — so-called borderline files — May and June 2026 could be a critical window. Submitting and formalising the application before the new rules apply can be decisive for approval.
We're likely to see a rush of approvals before the rules change, followed by a sharp slowdown for the most stress-ratio-sensitive applications. If your case is in that zone, talk to us before the rules shift.