PSD and CDS propose no early repayment fee on variable-rate mortgages until the end of 2027. Banks now charge up to 0.5%
The governing parties, PSD and CDS, have tabled an amendment to the 2027 budget in parliament: until 31 December 2027, banks would not be allowed to charge a fee when a home loan is repaid early, whether in full or in part. The amendment covers variable-rate loans granted under the 2017 home loan law (Decreto-Lei n.º 74-A/2017) (Jornal Económico).
For mixed-rate loans, there would be no fee only on repayments made during the years when the rate is variable; while the fixed-rate period is in force, the fee would still apply. Fixed-rate loans are not covered by the amendment at all.
At present, when you repay early, the bank may charge up to 0.5% of the amount repaid if the rate is variable, and up to 2% if it is fixed. Repay €20,000 early on a variable-rate loan and you pay up to €100. The fee on such loans was previously waived from November 2022 until the end of 2025, and it returned on 1 January 2026.
For now this is only a proposed amendment: the fee will be scrapped only if parliament passes it as part of the 2027 budget.
In September, parliament recommended that the government protect families with mortgages, as rates may rise because of the war in the Middle East. Our guide Mortgages in Portugal: what makes up the rate and what a foreigner will be asked explains how to repay early and when no fee is charged at all.
