Mortgages in Portugal

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Foreign nationals are able to obtain mortgage loans to buy real estate in Portugal on favourable terms. The lowest interest rates are less than 3% and local banks issue loans for both newly-built and existing property.

Maximum LTV ratio	65-80%
Rates	2.5-4% per annum
Loan term	Up to 30 years
Minimum age of the borrower	21
Maximum age of the borrower by the end of the loan term	75
Maximum percentage of monthlyincome for mortgage	33%

Documents

Mortgage applications in Portugal require the following documents:

passport copy
individual taxpayer number (número de identifição fiscal, NIF or número contribuinte)
bank statements for the last three months
personal income tax form for the last year
employment contract (identifying position and salary)
proof of address (bank correspondence with name and address, utility bills)
letter of recommendation from another bank.

All of the documents need to be officially translated to Portuguese and certified with an Apostille.

The loan application approval process typically takes 1-4 weeks.

Extra costs

Non-recurring mortgage costs in Portugal amount to approximately €1,400. Insurance costs another €70–150 per month.

Property appraisal and Due Diligence	About €250
Compulsory borrower's life and property insurance	€70–150 per month
Mortgage arrangement fee	About €1,200
Early repayment penalty	—

Mortgage in other countries:

Mortgage in France: interest rates in 2024

Mortgage in Greece for foreigners

How to get a mortgages in Italy: terms, rates, application documents — Tranio

Property buying guide for Portugal

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