Mortgage Info.

• About Mortgages in Portugal
• Can I Get a Mortgage in Portugal?
• How to Apply - Online Enquiry
• Mortgage Costs
• Mortgage Process
• Mortgage Types
• Are you a Mortgage Broker?

About Mortgages in Portugal

Mortgages in Portugal are available for most foreign buyers, via local Portuguese banks and are mainly arranged on an affordability basis, rather than using income multiples. Mortgage lenders in Portugal normally assess the ability to service the loan, after deduction of any outstanding current credit commitments, worldwide. The amount you are able to borrow is then usually based on a percentage of this remaining amount but each case is individually assessed and judged on its own merits.

Lenders in Portugal can lend up to 80% of property valuation, and the purpose of the loan can be for a purchase, construction of a property, home improvements or even to re-mortgage. Some lenders will accept loan consolidation into a Portuguese property, but this will be subject to the discretion of the lenders, similar to each lender taking rental income into consideration. When purchasing a property or obtaining a mortgage in Portugal there may be certain fees payable at different stages of the process, which can include transfer fees, stamp duty, estate fees, property taxes, legal fees and valuation fees. Before purchasing a property it is very important to seek legal advice, especially before signing a contract or paying a deposit.

Mortgage loans in Portugal are available on an individual (s) purchase basis.

www.mortgage4portugal.com are able to obtain pre-approval of mortgages for customers, so whether you are at the very early stages of thinking about purchasing a property in Portugal, already found your new property, or currently have a mortgage on your Portuguese home and wish to save money, we maybe able to help.

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Can I Get a Mortgage in Portugal?

I am a foreign national – can I get a mortgage in Portugal?

Yes, Portuguese lenders provide mortgages for non-residents that are either from Western Europe or North America.

How much can I borrow?

The maximum loan available on a Portuguese property is 80% of valuation, although some lender will restrict the loan size to 70% of the valuation.

Can I get a Mortgage on any type of property?

Loans are now available to purchase of any type of property, whether a small town house, apartment in a city environment, large villa or new developments.

Where can I exactly purchase a property in Portugal?

In Portugal main land, Madeira and Azores

How long does it take to obtain a mortgage?

A mortgage offering letter can be obtained from a lender once ALL the requested documentation has been forwarded. This takes approximately 4 weeks and it normally takes 6 to 8 weeks to completion.

Do I need Insurance on the property?

Yes, it will be a condition that your building insurance is in place for completion.

Can I borrow in Euros?

All mortgages are in euros and will be secured against your Portuguese property.

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How to Apply

In order to obtain a decision in principle, please complete the online enquiry form
Once approval has been given, we will then arrange for the lenders completed application to be sent to you for signing and returning with the necessary documents:

• Certified copies of passports
• Portuguese Fiscal number (Click Here)
• Proof of income
• Last 6 months personal bank statements
• Current loan or outstanding credit statements
• Latest Mortgage statement (home loan)
• Business accounts and last 6 months business bank statements, if self employed

THIS IS THE MIMIMUM REQUIREMENTS AND THE LENDER MAY ASK FOR FURTHER DOCUMENTATION TO BE PRODUCED BEFORE ACCETPING A MORTGAGE LOAN FOR OFFER.

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Mortgage Costs

Once you have decided on a property in Portugal you should work out how much it’s going to cost you. The figures below are a guideline only and are not based on any particular scenario or circumstances

The cost to raise finance varies from lender to lender and usually includes an application fee and a cost on completion. We would recommend you allow a minimum of €500 up to a maximum of 1% of the loan amount for this.

Valuations – The lender will organise the valuation that will be payable by the borrower. The valuation fee is approximately €175 plus VAT*
* (VAT is 21% in Portugal)

Solicitors / Lawyers charge between 1 and 2% of the sale value of the property.

You should allow up to 15% for your fees, as purchase tax is charged depending on the value of the property at between 0%-8%. Stamp Duty is charged at a rate of 0.8% of the assessed value and at a rate of 0,6% on any loan amount that may exist, cumulatively.  A small fee for notaries and registration fees is also applicable, and is usually around €320.(you can either include this figure or not)

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Mortgage Process

The mortgage process in Portugal is very similar to the majority of many other countries although you should expect a slightly heavier legal and administration system.

You should be aware that property purchased in Portugal, especially raising of Portuguese finance, can be more complicated and time consuming, therefore we would recommend that you start the mortgage process as early as possible to avoid such delays and make the buying process as smooth as possible.

Obtaining an acceptance for a mortgage, will give you the head start you need to purchase a property, this service can be arranged whether you have yet to visit Portugal. Once an acceptance has been completed, you will know the range of property values you will be able to purchase at and place an offer, confidently knowing that you can raise the necessary finance to support this.

Once an offer has been accepted on a property and the sale agreed, a contract is normally drawn up (promissory contract), which would include the price, completion date and any other relevant information for the sale.  An application of transfer is then made to the land registry, with deposits being paid, legal documents being drawn up, local tax numbers being registered. The property is also valued and the mortgage application reaches final sign off with the appropriate lender, with the mortgage offer being released and the property completion date being set.

If you are purchasing a property “Off Plan” a mortgage can only be raised by completion of the property, however you are still able to apply for the funds and have the mortgage offer in writing, but the final survey will not take place and funds will not be made available until the property has been completed and fully inspected by the lender concerned.

Self build schemes are available once the purchase of the land has been registered into the individual names of the owners

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Mortgage Types on Offer

• RE-PAYMENT MORTGAGES (CAPITAL & INTEREST)
• UP TO 5 YEARS INTEREST ONLY OPTION
• UP TO 80% LOAN TO VALUE
• MINIMUM TERM OF 5 YEARS
• MAXIMUM TERM 25 YEARS, WITH AN AGE LIMIT OF 75 YEARS
• LOANS AVAILABLE IN EUROS

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Are you a Mortgage Broker?

Do you want to work with a mortgage broker ?

Do your customers have a need for a Portuguese mortgage in Portugal ?

Please complete this form for more details: