Interest Bonification: Does the Government Pay Part of Your Loan?

With the escalation of Euribor, the Portuguese government launched extraordinary support measures, specifically the Interest Bonification.

Many families hear about this in the news but do not know if they are eligible or how it affects their amortization strategy.

The Problem: The Complexity of the Rule

Eligibility depends on a web of factors:

• Annual income (up to the 6th IRS bracket).
• Debt-to-income ratio (above 35%).
• Loan value (originally up to €250,000).
• Index (Euribor above 3%).

Many give up just trying to understand the bureaucracy.

The Agitation: Free Money vs. Amortization

If you are entitled to this support, the State pays a portion of your interest directly to the bank.

This changes the math of amortization. If the State is "subsidizing" your interest cost, your "effective interest rate" is lower.

Is it worth using your savings to amortize a debt that is partially being paid by third parties?

The Solution: The "Effective Interest" Calculation

1. Check your eligibility with your bank (it is mandatory for them to respond).
2. If you receive the bonification, calculate how much you save per month.
3. Subtract this value from your theoretical interest payment.

If, after the bonification, the cost of your loan is very low (e.g., 2%), it may be smarter to invest your savings (Savings Certificates, etc.) instead of amortizing, maintaining liquidity.

📱 The Simulation on Amorti

Use the App to see the "No Bonification" scenario.

1. Simulate your normal loan in AmortiApp.
2. See how much interest you would pay this year.
3. Compare with the estimated bonification value (e.g., the support can go up to about €720/year or more, depending on current legislation).

If the bonification covers a large slice of the interest, the urgency to amortize decreases. Take advantage of the support to build a robust emergency fund.

Do not waste aid. Analyze before paying.

Calculate Annual Interest