Mortgage Calculator

Since interest rates are low, financing the purchase of a property through a national bank loan could be an interesting option, especially because since 2010, Portuguese banks have not been lending as much as they are now. 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.

Mortgage lenders in Portugal have generally been averse to following the negative Euribor rate, with interest rates for prime borrowers hovering between 3.25 percent and 5.25 percent, depending on the specifics of the loan, although lower mortgage rates may be offered in certain situations.

The early redemption penalty for a variable rate acquisition mortgage is 0.50% as per the regulation of the Bank of Portugal. If it is a straight forward residential property purchase then most banks will make an offer, this is however often only 50% of the property purchase price or less, we offer up to 80% for non residents applying for loans in Portugal.

Depending on circumstances, we may or may not be able to offer you the exact loan amount and interest rate requested. The Financial Services Authority does not regulate loans secured on overseas properties. Once the property and mortgage deeds are signed in front of the Portuguese Notary and all the associated fees and taxes have been paid you become the official new owner of the property.

However, the agency expects the growth rate of new bank lending for housing to soften in 2018 and 2019 compared to the past two years," mainly due to expected smoother GDP growth and persistent restriction to the accessibility of first home purchases.

At Quinta Finance we have over 15 years of experience to draw upon with all the banks that operate in Portugal and by being physically based in Portugal we are in regular contact with the decision makers in Lisbon to make sure that we have the best products available for you.

Most banks finance 100% of the construction cost and the funds will be released in various stages throughout the building process. The interest rates of a Portuguese variable rate mortgage are linked to either the three or six month European Central Bank - Euribor - rate and increased by the margin (profit) that the bank applies.

The banks typically offer loan terms of up to 50 years for residents and 30 years for non-residents. The fixed-rate mortgage basically allows borrowers to pay a constant Algarve Property Golf rate for a certain period. As with mortgages in the UK, the type of mortgage you are eligible for will depend on your situation and how you intend to use the property.

For those wishing to build their own homes, banks offer construction mortgages. Yes, foreigners can get mortgages in Portugal, and in fact it can be easier to get a mortgage in Portugal if you are intending on buying property in the country. A fixed rate mortgage allows you to budget for future mortgage payments as the monthly cost will remain constant throughout the fixed rate period and you are protected from future increases of the European base rate.