Buying in Portugal with a mortgage follows precise rules: caps set by Banco de Portugal, a mandatory bank valuation of the property, insurance required by the banks. This guide explains each step, whether you are a resident or not.
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A mortgage in Portugal (crédito habitação) is a loan in euros, secured by a mortgage on the property you buy. The bank lends a percentage of the property’s value. You repay in fixed or adjustable monthly instalments, depending on the type of rate.
Three rules shape the whole market:
Reviews your application, has the property valued, issues the offer and takes the mortgage.
Prepares the application, consults several banks, compares and negotiates. Registered with Banco de Portugal.
Appointed by the bank, visits the property and sets its value.
Formalises the purchase and the loan on the day of the final signing.
Any adult with stable, provable income can apply for a mortgage in Portugal, whether they live there or not. Nationality is not a criterion. The bank looks at your tax residence, where your income comes from, your outgoings and your age.
The minimum down payment depends on how the property will be used and on your residence. Banco de Portugal sets the maximum financing; banks may lend less. Purchase costs always come on top of the down payment.
| Situation | Maximum financing (LTV) | Minimum down payment on the price |
|---|---|---|
| Main home, resident in Portugal | 90% | 10% + costs |
| Second home or investment | 80% | 20% + costs |
| Non-resident | Usually 60% to 80% depending on the bank and profile | 20% to 40% + costs |
The percentage applies to the lower of two values: purchase price or bank valuation. Caps: Banco de Portugal macroprudential recommendation, in force since 1 August 2026.
The bank starts from your net income and looks at how much is already taken up by your loans. Since 1 August 2026, your total loan repayments must not exceed 45% of your net income. This is the debt-to-income ratio (taxa de esforço).
Debt-to-income ratio = total monthly loan repayments ÷ net monthly income ≤ 45%
Two details make a big difference to the result:
Your real borrowing capacity is therefore the lower of the two limits: the one set by your income and the one set by the property.
The maximum term depends on your age when you apply.
| Your age when applying | Maximum term |
|---|---|
| 35 or under | 40 years |
| Over 35 | 35 years |
Banks also set a maximum age at the end of the loan, often around 75. At 50, the possible term is therefore usually closer to 25 years than to 35.
A longer term lowers the monthly payment and increases how much you can borrow, but also the total cost of interest.
Before issuing an offer, the bank has the property valued by an approved valuer. The financing is based on the lower of two values: purchase price or valuation. Valuation fees are paid by the borrower.
Watch out
If the valuation is below the price, the gap is added to your down payment. On a €400,000 property valued at €380,000 with 80% financing, the bank lends €304,000 instead of €320,000: €16,000 more down payment. Plan for a clause in the CPCV or a margin in your budget.
Illustration only, not a bank offer.
In Portugal, banks offer three types of rate. The variable rate long dominated the market; mixed rates have grown considerably. The right choice depends on your time horizon, your budget margin and your tolerance for risk.
| Variable rate | Fixed rate | Mixed rate | |
|---|---|---|---|
| How it works | Euribor (3, 6 or 12 months) + bank margin (spread) | Same rate for the whole term | Fixed for a period (often 2 to 10 years), then variable |
| Monthly payment | Changes at each Euribor review | Stable | Stable, then changes |
| Advantage | Benefits from falling rates | Full visibility | Visibility for the first years |
| Risk | Higher payments if Euribor rises | Starting rate often higher | Uncertainty after the fixed period |
| Early repayment | Capped fee, usually lower | Capped fee, usually higher | Depends on the current period |
| Suits you if… | Comfortable budget margin, short horizon or likely resale | Tight budget, need for predictability | Need for security at the start, without locking in for 30 years |
To compare two offers, look at the APR (TAEG) and the total cost of credit (MTIC), insurance included, rather than the nominal rate alone. Rates change every week: we do not publish an indicative rate here.
The bank asks for four categories of documents. The exact list depends on your employment status and your country of residence.
ID document, Portuguese NIF, proof of address, marital status.
Tax returns, payslips or company accounts, bank statements, existing loans.
Proof of available own funds and where they come from.
CPCV or accepted offer, caderneta predial, certidão permanente, energy certificate.
Allow around 45 days on average between a complete application and signing. Timing depends mostly on how quickly documents are provided, the valuation and the seller’s schedule.
1
Your profile, your documents, the banks to target.
2
The banks validate your application before the valuation.
3
The bank values the property and issues the final offer, with the standardised information sheet (FINE).
4
Signing of the purchase and the loan on the same day.
Portuguese banks require two types of insurance to grant a mortgage. Their cost weighs on the total cost of the loan, and can influence the margin the bank offers.
Covers repayment of the outstanding capital in the event of the borrower’s death or disability.
Covers the property, at least against fire, for the whole term of the loan.
In principle you can take out this insurance outside the bank, with equivalent cover. The bank may however link part of its offer to its own insurance: you need to compare the overall cost.
A credit intermediary is a professional registered with Banco de Portugal who prepares your application and presents it to several banks. They are usually paid by the bank that grants the loan.
| On your own | With an intermediary | |
|---|---|---|
| Banks consulted | One at a time | Several in parallel |
| How the application is presented | Standard | Tailored to each bank’s criteria |
| Comparison | Advertised rate | Rate, insurance, fees and total cost |
| Language and paperwork | In Portuguese, often in a branch | In your language, remotely |
| Cost to you | None | None with SpreadHunters |
We specialise in property financing for international buyers in Portugal.
Credit intermediary registered with Banco de Portugal under no. 0006447.
Down payment, foreign income, dividends, documents and remote signing.
Read the guide →
What happens, what you do and how long it takes, from the first review to completion.
Coming soon
The banks’ criteria, worked examples and our simulator.
Read the guide →
Life and home insurance: cover, cost, bank or external policy.
Coming soon
As a rule, no: Banco de Portugal caps financing at 90% for a main home and 80% for other uses. A public guarantee allows young residents to go beyond this, under conditions.
There is no single rate. The rate depends on Euribor, the bank’s margin, your profile, your down payment and the products taken out with the loan. To know yours, you need a simulation based on your actual situation.
No. You can have your application reviewed and get a pre-approval before finding the property. The CPCV will be requested later, for the valuation and the final offer.
The FINE (Ficha de Informação Normalizada Europeia) is the standardised information sheet the bank provides with its offer. It presents the rate, APR, fees and total cost in the same way: it is the document to use to compare two offers.
Yes. Co-borrowers’ incomes are added together to calculate the debt-to-income ratio, even if they come from different countries. Each income must be documented in its country of origin.
Yes, but the loan term is limited by the maximum age at the end of the contract set by each bank. The monthly payment is therefore higher, and life insurance may cost more.
One bank’s refusal is not the whole market’s. Each bank has its own criteria, particularly for foreign or self-employed income. A better-presented application, or one directed to another bank, can succeed.
Yes. In Portugal, you can transfer your mortgage to get better terms, taking into account transfer and early repayment fees.
In a few minutes, we review your situation and tell you the realistic terms for your profile, with no obligation.
