How to apply for a mortgage in Portugal? Whether you’re a fiscal resident or just getting started,
here’s a simple guide to help you navigate the mortgage process.
Even if you’re NOT a resident, Portuguese banks roll out the red carpet for you. Retiree? No worries—your overseas pension can help you get that dream home. Want to buy a property for your next big business idea? Banks might lend you up to 50% of the price.
But let’s be real, bureaucracy is still a thing, and the devil’s in the details. To avoid headaches and hair-pulling, start the mortgage process ASAP—even before you find the property. Knowing your budget and how much the bank is willing to lend you. Will make you a smooth negotiator and can help you understand you budget limit when searching for your dream property
So what are the steps when applying for a mortgage in Portugal?
- Start with contacting a Portuguese Bank.
- Get your bank account sorted. Remember, it’s mandatory to have a Portuguese bank account if you want to buy a house here.
- Know Your Loan-to-Value Ratios: Fiscal residents can usually secure at least 80% loan-to-value. If you’re offered less, it might be worth shopping around. Non-fiscal residents, on the other hand, might see a maximum of 70%.
- Understand the Process:
Initial Assessment: your bank will evaluate your income and provide simulations of how much maximum capital you can borrow.
Submit Your Application: Choose your mortgage, fill out the application, and submit your documents. Often, by this point, you’ll already have your dream property in mind. - Deposit Details: Be ready to pay a portion of the deposit when signing the promissory contract.
Ready to make your move?
