How to get a mortgage when buying housing in Portugal?

Over the past several decades, real estate in Portugal has been very popular among international investors. Moreover, people prefer different types of real estate - comfortable country houses, elite apartments in business districts, small premises in new buildings. It all depends on the available budget and individual preferences.

Why is Portugal such a “tasty morsel” for international investors? Among the main reasons:

• prices per square meter in Portuguese cities are lower than in many other European countries;
• the cost of living is also lower, but at the same time it becomes possible to live in the European Union;
• when buying real estate worth over 500 thousand euros, you can quickly get a residence permit;
• to obtain citizenship, you must live in the country for only 6 years.

But what is most attractive to foreign buyers is the possibility of obtaining a mortgage on fairly favorable terms. This allows you to become the owner of your favorite object in the capital of Portugal or in a resort town, even if the required amount has not yet been collected.

Mortgage terms

Many people can get a loan to buy a home in Portugal. To do this, it is enough to have a foreign passport, TIN, a certificate of income and account status, a letter of recommendation from the bank. It is important to keep in mind that all documents must be translated into English or Portuguese.

As for the conditions for obtaining and paying a mortgage, they are as follows:

• the rate is usually 3-4% per annum and depends on the chosen bank;
• loan term varies within 35-40 years;
• maximum monthly payment is 33-35% of income;
• first installment - 30-50% of the loan amount;
• maximum loan amount is 50-60% of the total value of the property.
• The mortgage can be used by persons aged 25 years and older. An important condition is that at the time of the estimated date of the end of payments, the person should not be more than 70 years old.

It is also worth remembering the additional costs required to complete the transaction. First is the payment for the services of a lawyer. When applying for a mortgage in Portugal, you need to pay a one-time fee of about 1.5 thousand euros. Monthly insurance premium may go up to 150 euros.

It is important to remember that when buying real estate in Portugal, as in any other country, you should only trust verified real estate companies with a brilliant reputation. Since transactions are often made remotely, this condition should be key for any buyer. This way you can avoid fraud and invest your money in a truly worthwhile property.