The European Central Bank’s (ECB) decision to raise interest rates is expected to impact monthly payments for thousands of borrowers, with changes set to appear on household bank statements in the coming months. The ECB has raised rates to combat persistently high inflation across Europe — a trend intensified by recent geopolitical tensions in the Middle East.
Variable-Rate Mortgages Hit Hardest
Loans tied to the Euribor benchmark — primarily variable-rate mortgages — are directly affected. As Euribor rises in response to ECB rate hikes, borrowers face higher monthly installments and increased overall repayment costs.
A clear example is a €150,000 home loan with a 30-year term. At a variable rate of 3.75%, the monthly payment stands at €705. If the rate climbs to 4%, the installment increases to €726 — an extra €21 per month. This marks the first significant increase since autumn 2023, when the previous round of rate hikes took effect.
Fixed-Rate Loans Remain Unchanged
Borrowers who opted for or converted to fixed-rate mortgages are insulated from these shifts. Their monthly payments stay constant regardless of broader market movements. In the same €150,000, 30-year scenario, the installment remains unchanged at €705 — meaning no additional financial burden from recent monetary policy developments.
Impact on ‘My Home’ Programme Loans
The effect is milder for participants in Greece’s government-backed My Home I and My Home II schemes, which include state subsidies. Using the same loan parameters, the monthly payment rises only from €563 to €573 — an increase of just €10. The subsidy absorbs at least half of the rate-driven cost increase. For families with three or more children, coverage may be even higher, further reducing the net impact.
Summary of Changes (€150,000, 30-Year Loan)
| Loan Type | Previous Payment | New Payment | Change |
| Variable Rate | €705 | €726 | +€21 |
| Fixed Rate | €705 | €705 | No change |
| My Home I & II | €563 | €573 | +€10 |
Savings Accounts Largely Unaffected
For depositors, the impact is typically minimal — especially for standard savings accounts. As observed during the last interest rate cycle, most retail deposits are unlikely to see meaningful adjustments in return rates.