There are changes in sight in the collection of bank commissions in Portugal, namely those related to the granting of home loans. “The lender [bank or financial entity] can only charge a single commission for the analysis and decision on the granting of credit, without prejudice to the charging of commissions or additional expenses for the valuation of the property”, reads in Law n.º 24/ 2023, published this Monday (May 29, 2023) in Diário da República. This is a measure that takes effect within 30 days.

This is one of the amendments contained in the said law, and there are also new features with regard to the collection of commissions for processing the provision of the house. Until now, only contracts signed after January 1, 2021 did not pay these commissions, a reality that changes with the entry into force of the new law, as the commission in question ends for all housing credits. Savings could reach 40 euros per year, as we wrote in this article.

Also with regard to the granting of mortgage loans, specifically the valuation of the property, and as the document reads, banking institutions are now obliged to deliver “to the consumer a duplicate of the reports and other documents of the valuation made of the property by an independent appraiser ”. The individual may then present the assessment at another banking institution, provided that the document was issued less than six months ago.

“The creditor may object to the use of an appraisal report issued more than three months ago, when it can reasonably demonstrate that relevant market changes have taken place”, the document also states.

With regard to the spread (profit margin of the bank) to be applied, the law clarifies that “information must be presented to the consumer on the simulation of the provision for each item of discount between the base spread and the contracted spread, both at the initial moment contracting the credit and in the future at the request of the consumer”.

free distract

Another novelty of the new law is related to the conditions under which banking institutions issue and send the customer the cancellation after the term of the housing credit agreement. Here, too, there are no commissions.

“Within 14 working days after the end of the contract, the creditor issues and sends the respective cancellation to the consumer, not being able to charge commissions for this act, once the full fulfillment of the contractual obligations has been verified. The creditor may not impute to the consumer the additional expense incurred if he chooses to issue the document for cancellation of the mortgage in a manner other than that provided for in the final part of paragraph 2 or in paragraph 3 of article 56 of the Code of the Land Registry”, reads in Law n.º 24/2023.

Law protects consumers from future commission increases

Also noteworthy is the fact that the new law contemplates a sort of brake rule for future increases or the creation of new commissions to compensate those that are now eliminated. “Credit institutions may not pass on to consumers, through commissions or other charges, any charges or cessation of revenue arising from the amendments provided for in this law”, reads in article 9, entitled “No repercussion and safeguard of consumers”.

Source: Idealista