Getting A Mortgage For Property In Portugal

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. According to the BdP's latest figures for loans and bank deposits, Portugal's banks issued 810 million euros worth of residential mortgages to households, down from €919 million in July - which was already a decrease from the month before - but still quite a bit more than the €709 million granted in August 2017.

We work with many Portuguese banks to offer you the best customer service both at home and abroad to keep your financial monitoring as simple as possible. is an information website - all of our content is written by qualified advisors from the front line, for the sole purpose of offering great, relevant, and up to date information on all things mortgages.

Portuguese banks are still offering loans but the spread" (which is what the bank charges its customers over and above the rate at which they lend to each other) has become very high and the credit checks and lending criteria have changed as well. Lending criteria - this usually depends on your financial position which is determined by your current income earnings, debts and employment history.

Finance is available for the purchase of property in Portugal. Caixa offers access to acquisition and financing of housing properties from Partners with competitive price and mortgage conditions. By using ComparaJá.pt you can access a whole range of mortgage offers in the Portuguese market.

Laid out in its simplest terms, they'll use an outgoings-to-income calculation to figure this out, which means your total monthly income, subtracted the monthly outgoings (including the new mortgage payment). They have access to international lenders who offer funding for home purchase loans and re-mortgage financing.

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).

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 maximum mortgage term available is 30 years and the maximum age for getting a mortgage in Portugal is 80 years. Selling a property in Portugal are available up to 80% loan to value (LTV) with a few banks, with the majority at 75% LTV. It's sensible to get the mortgage process started as early as possible, even if you've not begun to look at properties.