Learn how your Christmas bonus can help you cut interest costs and lower your mortgage balance while the no-fee early repayment regime remains in place until 2025.
A seasonal bonus with long-term impact
The Christmas season often brings a welcome financial boost for many households. But beyond gifts and celebrations, your Christmas bonus can also be an opportunity to strengthen your financial stability. One question naturally arises: should you use that money to repay part of your mortgage?
In 2025, the answer may well be “yes”. The fee exemption for early repayments on variable-rate mortgages remains in force, making this a particularly favourable moment to reduce debt and interest.
What early mortgage repayment really means
Making an early repayment simply means paying off part of the capital ahead of schedule. Whether partial or total, this decision can bring several clear advantages:
- Lower interest paid over the life of the loan
- A reduced monthly instalment or a shorter mortgage term
- A greater sense of control and long-term financial security
Why your Christmas bonus can work in your favour
Many families see the bonus as a chance to breathe financially. Using it to reduce your mortgage, however, can be a strategic move:
- Until 31 December 2025, no early repayment fees apply to variable-rate mortgages
- Lowering your outstanding balance helps soften the impact of higher interest rates
- Reducing capital today may strengthen your position to negotiate a better spread in the future
- It converts temporary income into real, long-term savings
The benefits of repaying now
In a context where Euribor increases continue to affect Portuguese households, early repayment can be a prudent choice. Key benefits include:
✓ No additional costs, thanks to the current fee exemption;
✓Improved negotiation power for future mortgage conditions;
✓ Better financial planning, entering 2026 with a lighter debt load and more flexibility;
Other sensible ways to use your bonus
Not every household has the same priorities. Your Christmas bonus could also be used to:
- Build or reinforce an emergency fund
- Invest in home improvements that increase property value
- Avoid relying on personal loans for seasonal expenses
The important thing is understanding your financial profile and choosing the option that offers the greatest peace of mind.
Unsure whether this is the right step for you?
Before making any repayment, it’s essential to understand how it will affect your instalment, your total interest and the duration of your loan. A licensed credit intermediary, such as Credit Place, can help you compare scenarios and understand the real financial impact.
If you’re buying a home through ENTREPORTAS Real Estate or any other agency, Credit Place provides independent, transparent and cost-free advice, always focused on protecting your interests — not the banks’.
Your Christmas bonus can be more than a seasonal extra. In 2025, it can be a powerful tool to reduce your mortgage and move towards a more balanced financial future.
At Credit Place, we help turn financial decisions into safe, informed and meaningful choices. If you’re considering an early repayment or even transferring your mortgage, we’re here to help you understand how much you could save.