The Ministry of Economy, Development and Tourism has published a new regulation in the Official Gazette aimed at improving transparency in mortgage credit information. The regulation is intended to make it easier for consumers to understand financial details provided by lending institutions and to compare different offers and conditions.
The new rules update both the content and format of informational brochures given to consumers, adding sections that help guide them through various offers from financial institutions. The changes also improve upon Decree 42 from 2012, which had been criticized for not providing enough detail for consumers to fully understand the terms and costs associated with their financial products.
According to the Ministry, the updated regulation uses simpler language and a standardized format so that consumers can more easily identify key details such as loan start dates, number of installments, Equivalent Annual Charge (CAE), and Total Credit Cost (CTC). It also includes comparative information about interest rates offered by institutions alongside the average annual market rate, encouraging people to seek out multiple quotes before making decisions.
Álvaro García, Minister of Economy, Development and Tourism and Energy, said: “This regulation represents a concrete step forward in transparency and consumer protection. We want people to fully understand the credit they are contracting and also be able to compare information presented by lending entities.”
He added: “We are strengthening financial education and supporting greater competition in the mortgage market.”
The new requirements will take effect in 12 months on February 27, 2027. This period is intended to give stakeholders time to adapt to the changes.
