International Mortgage Broker Portugal

• Debt-to-Income Ratio: Your monthly financial commitments, including current mortgage or rent, loans, and credit cards, should not exceed 35% of your net monthly income.
• Income Stability: Lenders evaluate income sources, including employment contracts, self-employment revenue, and foreign earnings.
• Property Valuation: The mortgage amount is calculated based on 70% of the property’s valuation for purchase, remortgage, home improvements, or construction loans.

How Much Can You Borrow?

Lenders determine borrowing capacity based on:

• Loan-to-Value (LTV) Ratios: Borrow up to 70% of the property’s appraised value.
• Income & Existing Liabilities: Your ability to make repayments is based on joint gross and net income calculations.
• Loan Terms: Portuguese mortgage terms range from 5 to 30 years, depending on your age, financial profile, and lender requirements.

Required Documents for a Portuguese Mortgage

Lenders require detailed financial documentation to process mortgage applications.

For Employed Applicants:

• Last 3 months’ original payslips
• Latest original P60 & employer reference
• Last 6 months’ personal bank statements

For Self-Employed Applicants:

• Last 2-3 years’ audited accounts & tax returns
• Last 3 months’ business & personal bank statements

Key Considerations

• Stability vs. Flexibility: Fixed rates suit those seeking financial certainty, while variable rates appeal to buyers comfortable with market dynamics.
• Currency Risks: Paying in a foreign currency? Consider hedging strategies to mitigate potential losses from exchange rate fluctuations.
• Economic Trends: Evaluate current and projected Euribor rates to determine the potential impact on your mortgage.

• Taxes and Duties: Property transfer taxes and stamp duty typically range from 6-8% of the property’s value, depending on its location and type.
• Legal and Notary Fees: Expect to pay between €1,000 and €3,000 for contract preparation, property registration, and other legal formalities.
• Valuation and Bank Charges: Lenders often require a property valuation, costing approximately €500 to €1,000, alongside mortgage arrangement fees of around 1% of the loan amount.
• Insurance Obligations: Life and home insurance are frequently mandatory for mortgage approval, ensuring both the lender and buyer are protected.
• Currency Exchange Fees: For non-residents, fluctuating exchange rates and transfer fees can add unforeseen costs when converting foreign income into euros.
• Early Repayment Penalties: Some lenders impose fees for settling your mortgage ahead of schedule, which can range from 0.5% to 2% of the outstanding balance.

How Long Does a Portuguese Mortgage Take to Get Approved?

Typical Approval Timeline:

1. Pre-Qualification (1-2 weeks): Submit documents, initial financial assessment.
2. Valuation & Bank Analysis (2-3 weeks): Property valuation, lender due diligence.
3. Final Approval & Offer (1-2 weeks): Bank issues formal mortgage offer.
4. Completion (2-4 weeks): Signing at the notary, finalising property ownership.

Speed Up Your Approval!

• Ensure all financial documents are complete & accurate.
• Work with a broker to negotiate terms and communicate directly with banks.
• Choose a property with a clean legal record to avoid processing delays.

• High debt-to-income ratio exceeding 35%.
• Inconsistent or insufficient income documentation.
• Poor or non-existent credit history with international banks.
• Property valuation lower than expected, reducing LTV eligibility.

Key Risks and Challenges

• Exchange Rate Volatility: Monthly repayments can increase if your home currency weakens against the euro, leading to higher costs over time.
• Dual Exposure: Buyers with variable-rate mortgages face compounded risks from both interest rate adjustments and currency fluctuations.

Strategies to Mitigate Currency Risks

• Hedging Solutions: Fixed-rate mortgages provide repayment stability, shielding you from both interest rate and currency volatility. For variable-rate loans, consider forward contracts to lock in favourable exchange rates for future payments.
• Multi-Currency Accounts: Holding funds in euros can reduce the need for frequent currency conversions, minimising exposure to unfavourable rates.
• Specialised FX Tools: Explore options like currency swaps or structured FX products tailored to expats and international investors.

Directly Approaching a Bank

• Limited Options: Banks offer only their own mortgage products, restricting your ability to compare rates and terms across the market.
• Language and Local Knowledge Barriers: Navigating the process often requires fluency in Portuguese and familiarity with local regulations, which can be challenging for non-residents.
• Time-Intensive: Without intermediary support, you may face delays due to incomplete applications or unfamiliarity with lender-specific requirements.

• Market Access: We connect you with a diverse network of lenders, ensuring competitive rates and tailored terms that align with your financial profile.
• Streamlined Process: Our team handles the complexities, from pre-screening applications to liaising with banks, expediting approvals and minimising stress.
• Expert Guidance: With deep expertise in Portuguese mortgage regulations, we provide personalised advice, helping you navigate every step with confidence.
• Enhanced Negotiation Power: Leveraging our established relationships with lenders, we secure favourable terms that may not be available to individual applicants.

• Have questions about eligibility or required documents? Our expert brokers provide personalised guidance tailored to your financial profile, helping you understand exactly what’s needed to qualify.
• Concerned about data security? Rest assured, your sensitive financial information is handled with the utmost care, adhering to strict privacy standards.
• Ready to explore your options? Reach out to our team today for expert advice and a detailed assessment of your borrowing capacity. Let us help you turn your dream of owning property in Portugal into reality.