Home Loan

NOVO BANCO has agreements established with several property developers, enabling you to access special terms for loans, spread and fees. Interest rates are usually variable, based on Euribor plus a percentage (12-month Euribor is currently -0.16%), but up to 20 year fixed rates are available. Their team of specialists is based in the Algarve and has a combined experience of over 30 years in the financing and mortgage markets in Switzerland, UK and Portugal.

Interest only mortgages are only available for construction mortgages in Portugal, and even then, usually only for the first one or two years of the mortgage term. If the home was a primary residence, 50% is added to the income tax in the year of the sale - unless the proceeds are used within two years to purchase another primary residence, in which case the gains are tax exempt.

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 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.

Fixed-rate mortgages are available from some lenders and the fixed-rate period can range from one to 30 years. Holiday home mortgages are available for private non-resident property buyers, who are not Portuguese residents. Fixed rate mortgages can be a great way to plan ahead or work to a budget.

It is important to establish the price range the purchaser can afford and most banks will offer to work out a simulation (Simulação) based on the price range required and average monthly income. Commercial mortgages, including mortgages taken out by companies, are for those who seek to buy property for commercial purposes and might include investment mortgage.

The rate is usually fixed on the day of the mortgage deed signing (may vary depending on lender) and is based on the prevailing SWAP rate for the chosen fixed rate period. As interest rates are very low at present (2019), you should be able to secure a rate of around 1%, this "spread" will be fixed for the full term of the mortgage and it will "track" with the Euribor rate, so will change every 12 months.

A service from the online mortgage information and application processing system offering you the best loans in Portugal too. Property investment in Portugal is now more popular than ever as investors move money from unpredictable financial markets in to bricks and mortar.

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. Portugal property for sale 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.

It is important that you seek independent legal and taxation advice on any property that you are going to purchase. Portuguese banks are happy to grant mortgages to non-residents. If you're looking to buy a property to live in, we can help you choose from a range of fixed and tracker mortgages or a combination of both.