Getting A Mortgage In Portugal
Quinta Finance has established itself as the leading mortgage brokerage service in Portugal that offers professional mortgage advice for non-resident property buyers; our aim is to help you throughout every step of the process until completion. Interest rate - the rate used for home loans in Portugal is Euribor after which the bank applies its margins. Even college graduates just entering the workforce thought nothing of starting out with thousands in credit card debt and an average of $24,000 in student loans.
Persons who are not residents of Portugal need to pay taxes only on income earned at that country, for instance, interest paid on deposits or savings in Portuguese banks. A couple of banks in France say they'll do mortgages for nonresidents, but the requirements are so strict that precious few non-France residents would qualify.
Most Portuguese banks offer different types of mortgage repayment options on either a fixed or a variable interest rate. We will be able to show you the most important factors regarding your mortgage: from interest rates, to commissions and taxes. Interest-only mortgages are usually only offered for new constructions, and typically only for a two-year term.
You should always go through the same process that you would follow if you were buying a property in the UK. Take independent advice from an English-speaking lawyer who is not connected to your seller, estate agent or property developer. In fact, since we can get a loan for 100% of the purchase price, let's get a bigger house than we actually need and count on a huge appreciation.
Mortgage rates in Portugal have been dropping consistently since the first quarter of 2014, when they averaged 3.37%. The BPI Mortgage Loan Solutions offer several variable and fixed rate options. You should also know that the maximum loan-to-value mortgage in Portugal for non-residents is between 60% to 70% of the purchase price.
Once you've selected your dream Portuguese property and have either an accepted offer or have a sales contract in place with the seller, you can bring the remaining documents to your mortgage lender and follow an application process that is similar to much of Europe.
It includes the initial expenses with compulsory multi-risk home insurance 174.54€ (average annual value), opening fee €520.00 (taxes included), administrative and contract fees €416,00 (taxes included), property valuation fee €221,00 (taxes included), instalment processing fee €1.77 (taxes included), stamp duty on the agreement €600.00, registration fees €240.00, notary fees €153.75 (taxes included), solicitor services €389.48 (taxes included).
Having as goal the finding of advantageous solutions that make the purchase of a house at a time when access to bank credit is strongly limited, we sign partnerships with the main bank institutions so as to offer excellent business opportunities to all our clients.
In addition, the company is extremely experienced in arranging loans on Touristic property. Mortgages for acquisition purposes are offered by all the major Portuguese lenders to private individuals purchasing Property Management Vila Sol a property with a habitation license. To make things worse, the US taxpayers' exposure to the market is growing, not reducing; last year they bought or guaranteed three-quarters of all U.S. home loans.
