Fill out the form to get expert mortgage advice and an initial assessment of your mortgage eligibility by one of our advisors. You can also do an affordability check to determine your eligibility.
INITIAL MORTGAGE ADVICE
- INITIAL ENQUIRY
- AFFORDABILITY CHECK
- OPENING PORTUGUESE BANK ACCOUNT
- MORTGAGE LENDING CRITERIA
- MORTGAGE PAYMENT CALCULATOR
INITIAL ENQUIRY
Affordability Check
Calculate your Debt To Income (DTI) ratio, which is used by the banks to determine whether you will be eligible for a mortgage in Portugal Mortgage lenders in Portugal typically require that you are you DTI is maximum 35-40%. Please enter all amount in euros. If needed you can use our currency calculator.
OPENING PORTUGUESE BANK ACCOUNT
MORTGAGE LENDING CRITERIA
It is a good idea to familiarize yourself with the lending criteria in Portugal, as they differ from many other countries. Our expert advisors are of course also available to assist you, when you submit the initial inquiry form
Maximum borrowing
The maximum borrowing amount is first of all determined by the loan to value ratio. The loan to value concept refers to the ratio of the mortgage amount to the property purchase price (or valuation if lower). Non-residents buying holiday homes can borrow up to 70% of the purchase price (or valuation if lower). For fiscal residents (those paying Portuguese taxes) the maximum mortgage is up to 80%.
Debt to Income
To determine what you can borrow, lenders look at your ability to pay – debt to income ratio (DTI). Typically, banks require that you allow around 1/3rd of your net monthly income after tax to pay for all worldwide debts and significant expenses (including the new Portuguese mortgage).
Maximum term
The maximum term for a mortgage in Portugal is 25 years and there are various options for different terms. However 75 is the maximum age accepted by lenders. So if you are 55 years old, the maximum term would be 20 years.
If you are over age 60 and in receipt of a pension, you can still have a mortgage in your own name, although the same criteria relating to the maximum level of debt-to-income will apply. It is also possible to use a guarantor such as a family member to secure your borrowing, which can also have potential inheritance tax benefits.
Mortgage payment calculator
Calculate your monthly repayment based on your loan amount and the desired term of the Portuguese mortgage.
- INITIAL ENQUIRY
-
INITIAL ENQUIRY
Fill out the form to get expert mortgage advice and an initial assessment of your mortgage eligibility by one of our advisors. You can also do an affordability check to determine your eligibility.
- AFFORDABILITY CHECK
-
Affordability Check
Calculate your Debt To Income (DTI) ratio, which is used by the banks to determine whether you will be eligible for a mortgage in Portugal Mortgage lenders in Portugal typically require that you are you DTI is maximum 35-40%. Please enter all amount in euros. If needed you can use our currency calculator.
- OPENING PORTUGUESE BANK ACCOUNT
-
OPENING PORTUGUESE BANK ACCOUNT
To get a mortgage in Portugal you will need a bank account with the bank arranging the mortgage. Sometimes this is done at the outset and other times after the formal approval has been granted. It can often be a good idea to open a Portuguese bank account early in the process in order to benefit from the best possible exchange rates. Your Mortgage Direct adviser can help you figure out what is the best solution for you. - MORTGAGE LENDING CRITERIA
-
MORTGAGE LENDING CRITERIA
It is a good idea to familiarize yourself with the lending criteria in Portugal, as they differ from many other countries. Our expert advisors are of course also available to assist you, when you submit the initial inquiry form
Maximum borrowing
The maximum borrowing amount is first of all determined by the loan to value ratio. The loan to value concept refers to the ratio of the mortgage amount to the property purchase price (or valuation if lower). Non-residents buying holiday homes can borrow up to 70% of the purchase price (or valuation if lower). For fiscal residents (those paying Portuguese taxes) the maximum mortgage is up to 80%.
Debt to Income
To determine what you can borrow, lenders look at your ability to pay – debt to income ratio (DTI). Typically, banks require that you allow around 1/3rd of your net monthly income after tax to pay for all worldwide debts and significant expenses (including the new Portuguese mortgage).
Maximum term
The maximum term for a mortgage in Portugal is 25 years and there are various options for different terms. However 75 is the maximum age accepted by lenders. So if you are 55 years old, the maximum term would be 20 years.
If you are over age 60 and in receipt of a pension, you can still have a mortgage in your own name, although the same criteria relating to the maximum level of debt-to-income will apply. It is also possible to use a guarantor such as a family member to secure your borrowing, which can also have potential inheritance tax benefits.
- MORTGAGE PAYMENT CALCULATOR
-
Mortgage payment calculator
Calculate your monthly repayment based on your loan amount and the desired term of the Portuguese mortgage.