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A person using a calculator on a large desk with laptop describing the Mortgage section A modern building complex with large windows and blue sky in the background describing the schools in the Algarve offered by the independent real estate buyer’s agent Lagos Homes in the Algarve Portugal


We have partnered with esteemed firms approved by the Bank of Portugal, specializing in mortgage services for expats. With an impressive track record of securing approvals, our partners can provide personalized mortgage simulations at no cost. They offer valuable insights into monthly repayments, interest rates, and associated bank charges.


Simply send us a quick message, and we'll promptly connect you with our trusted partner.

Mortgage Process


The process begins with an initial consultation with your mortgage broker. During this e-meeting, you will discuss your financial goals.  The broker will gather information about your income, employment history, credit score, and other relevant details to assess your mortgage eligibility.


Based on the information provided, the mortgage broker will evaluate your eligibility and pre-qualify you for a mortgage. They will estimate the loan amount you may be eligible for and discuss various mortgage options, including interest rates, repayment terms, and financing options available to you.


The broker will submit your mortgage application to multiple banks on your behalf. They will leverage their network and relationships with lenders to identify the most suitable options based on your financial profile and property requirements. 


Once you have discovered the perfect property, Lagos Homes will collaborate closely with your lawyer and mortgage broker to ensure all necessary legal documents are secured. To determine the loan amount, the bank will conduct a property valuation performed by a qualified professional.

Mortgage Options

Fixed-Rate Mortgages

With a fixed-rate mortgage, the interest rate remains constant throughout the loan term, ensuring stability and predictability for your monthly payments. It is a popular choice for borrowers seeking a consistent repayment plan and wanting to avoid potential interest rate fluctuations. In Portugal, fixed-rate mortgages offer various loan term options, ranging from 5 to 30 years. Selecting the right loan term depends on your financial goals, affordability, and desired repayment period.

Variable-Rate Mortgages

Variable-rate mortgages have an interest rate that can fluctuate based on market conditions. Variable-rate mortgages may offer lower initial interest rates compared to fixed-rate mortgages, but the interest rate can change over time. The downpayment requirement for variable-rate mortgages is usually similar to that of fixed-rate mortgages.

Downpayment Options

The downpayment required for a mortgage in Portugal is influenced by several factors, such as the bank's policies, the borrower's financial situation, and the property type. In general, downpayment requirements can go as low as 10% for residents, while non-residents often face higher downpayment requirements, typically around 30%. However, through our partnerships, even as a non-resident, you will have the option for a lower downpayment of 20%. It's worth noting that providing a higher downpayment can potentially result in more advantageous loan terms, including lower interest rates and reduced fees.

Spread & Euribor

The Euribor is a benchmark interest rate used by European banks. It fluctuates based on market conditions and is typically reviewed and adjusted on a regular basis, such as every 12 months. 
The spread refers to the additional interest rate charged by the lender on top of the Euribor. It is a fixed percentage determined by the lender based on various factors, such as the borrower's creditworthiness and the loan-to-value ratio. As the Euribor changes over time, the mortgage interest rate will also adjust accordingly with a variable-rate mortgage.

A bids eye view of a beachfront with white wash water and a surfer showing describing the more help section offered by the independent real estate buyer’s agent Lagos Homes in the Algarve Portugal

Do you have any questions?

We go beyond helping you find your dream property, offering expert guidance across all aspects. 

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