Currently, the macro prudential rules of the Bank of Portugal (BdP) allow financing of mortgage loans up to a maximum of 90% of the property value. These are the general rules, which are only circumvented by the public guarantee that finances 100% of the purchase of a first home for young people up to 35 years old.

However, is now the right time to extend 100% mortgage financing to everyone? Some banks say yes, but there is no consensus in the sector.

One of the voices that spoke in favour of giving 100% credit for the purchase of a home to all citizens was Miguel Maya, president of BCP. "There is nothing that will make me give up if I think it's worth changing," said the executive, quoted by Jornal de Negócios. In his view, this type of financing makes sense, especially since the main reasons for default on home loans are unemployment, illness, and divorce, not 100% financing.

João Pedro Oliveira e Costa, CEO of BPI, also admits that it would be possible to go "further" in bank financing for home purchases, according to the same newspaper. It is in this context that Miguel Maya considers it important for the Bank of Portugal to reflect on the matter with the banking sector to change the rules, if it makes sense.

But there is far from a consensus among all bankers. For example, Santander believes that loans financed 100% through public guarantees – which have had strong uptake – are contributing to the rise in house prices. And, therefore, its CEO, Pedro Castro e Almeida, understands that it is not a good idea to extend housing loans to 100% for everyone, the article also states.