Portugal provides mortgage loan options for both residents and non-residents, regardless of visa status. However, being a non-resident can impact mortgage eligibility and borrowing capacity. To navigate these considerations effectively, it's advisable to consult with a specialized mortgage broker.
We have partnered with an esteemed firm approved by the Bank of Portugal, specializing in mortgage services for expats. With an impressive track record of securing approved mortgages, our partner 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 with the subject line "mortgage," and we'll promptly connect you with our trusted partner.
1 / 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.
2 / 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.
3 / 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.
4 / 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.