Loans to buy a house have risen to the highest rate since 2003

ANDm May, loans for housing grew 10.8% annually, the highest value since February 2003, released this Monday the Banco de Portugal (BdP). 

“ In May 2026, the total amount of loans granted to private individuals grew by 10.5%. In the same period, the stock of housing loans increased by EUR 1150 million, reaching EUR 115.7 billion at the end of May. Compared to the same month, 10.8%, the highest increase since February 2003. The annual rate of change in loans for housing thus maintained the path of increase started at 2024′′, read in notified released by the bank supervisor.

The amount of loans for consumption and other purposes rose by EUR 209 million in May, totaling EUR 35.1 billion.

“ The annual rate of change decreased to 9.2%, reflecting an increase in loans for other purposes (to 9.3%) and a reduction in consumer loans (to 9.2%)”, the bank supervisor also said.

Loans to undertakings

Also at the end of May 2026, the stock of loans granted by banks to companies reached 76.2 billion euros, plus 145 million more than at the end of April. In homologous terms, an increase of 5.5% was observed below 6.2% in April.

“ Loans to micro-enterprises, small enterprises and medium-sized enterprises continued to grow over the same period (+12.3%, +7.2 % and +0.4 % respectively). In contrast, loans to large companies showed a negative annual variation rate (-0.5%)”, explains the bank supervisor.

The BdP also reveals that “credit to the construction sector and real estate activities has slowed down for the first time since December 2025, reaching an annual variation rate of 11.9% (12.1% in April)”.

“In the sectors of commerce, transport and accommodation, the annual rate of variation was reduced to 4.6% (5.8% in April)”, and “this deceleration was visible in the sectors alone: the rate fell to 4.6% in housing and catering (5.5% in April), to 6.6% in trade (8.1% in April) and to -1.3% in transport and storage ( 0.4% in April)”.

“ The industry and electricity sector showed a positive annual variation rate of 0.6%, after a growth of 1.6% in April ", can be read.

What about the deposits?

In the same month, the “stock of private deposits in resident banks amounted to EUR 203,0 billion more than in April”.

“ This increase reflected increases of EUR 197 million in spot liabilities (mostly current deposits) and 202 million in forward deposits (including agreed-term deposits and pre-notice deposits). In homologous terms, the stock of private deposits increased 4.6% (4.9% in April),” explains the BdP.

The stock of corporate deposits in resident banks reached EUR 79.1 billion at the end of May, plus EUR 231 million than at the end of the previous month. The annual rate of change decreased to 12.2%, below 12.6% recorded in April.