Mortgage process Portugal

Insights into what is involved in buying, selling & living in Portugal

How does a mortgage process in Portugal works?

  1. Find a property of your liking and establish the purchase price.

  2. Find your mortgage brokers or banks who you think toy be willing to provide the mortage

  3. They will send you a simulation and give you a break down of the cost and monthly payments.

  4. You can either opt for a variable or a fixed interest rate.

  5. You send documents requested by brooker or bank

  6. Tne brooker or bank will contact your lawyer or estate agent to provide them with the property documents

  7. You submit a mortgage application with all the requested documents.

  8. Approval or denial should be received within 2 weeks.

  9. Once approved the bank will carry out a valuation (they appoint the valuater)

  10. If the valuation is to the liking of the bank request approval letters from bank or lender

  11. Bank may request further documentation from your agent or lawyer.

  12. Completion only can take place 8 days after you have signed the approval letter (reflection period by law)

  13. Your lawyer will pay the tansfer tx (IMT) and stamop duty (IS)

  14. Normally the bank books the escritura (title deed) at a local Notary or Casa Pronto (Convservatorio)

  15. You will get keys from seller and copies if title deed.

  16. Your lawyer or representative will take care of contracts with utility companies (electricity, water, gas, telephone, condominium)

For a Mortgage in Portugal you will need the following:

  • First provide us with minimal information for the free simulation, ie purchase price, deposit, DOB, loan term etc

  • If happy with the simulation the bank will require copies of your documentation, passport, fiscal number in Portugal (obtained by your portuguese lawyer), declaration of your employer (P60), Declaration from your employer; and other documents required which will be sent to you with the simulation

  • We will chase your estate agent/lawyer for all relevant property documents required when submitting your application

  • After the Mortgage is approved the bank will request a evaluation of the property

  • If happy with the valuation the bank will send you Approval letters to sign so you are ready for completion

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