Financing a Property in Portugal: Expert Insights from a Top Mortgage Broker

💡Foreigners can secure a mortgage in Portugal without being a resident or declaring income tax, as long as they can provide proof of income from abroad.

📈Interest rates in Portugal are expected to decrease in the coming years, making it a more affordable option compared to other countries.

🏢A mortgage broker can help you navigate the entire process, from choosing the right bank to negotiating terms and following up with the bank until the deed is received.

💰Eligibility for a mortgage in Portugal is based on factors such as regular income, a down payment of at least 20%, and a low debt-to-income ratio.

🌍Foreigners can finance properties in Portugal for various purposes, including retirement, investment, or commercial use.

What documents are required to secure a mortgage in Portugal as a foreigner?

—Foreigners need to provide their passports, income tax documents, pay stubs, bank statements, credit reports, and employment verification.

Is it better to choose a fixed or variable interest rate for a mortgage in Portugal?

—A fixed interest rate offers a predictable cash flow, while a variable rate is linked to market conditions. It's advisable to assess your financial situation and preferences before making a decision.

Can a mortgage in Portugal be used for renovations?

—Yes, a mortgage can be used for renovations. You can allocate a portion of the approved amount for the house and the rest for renovations.

What are the costs and expenses involved in purchasing a property in Portugal?

—The costs include a down payment of 20%, closing costs (taxes), mortgage closing costs, property closing costs, and annual property tax (around 0.3% to 0.45% of the property value).

Is it advisable to shop around different banks for better mortgage terms and rates?

—Yes, it's recommended to shop around different banks as they can offer different scenarios, terms, rates, and additional benefits such as waiving life insurance requirements.

00:00In this video, Kaylee interviews Raphael, a top mortgage broker in Portugal, to get insights into securing a mortgage as a foreigner.

00:21Foreigners can obtain a mortgage in Portugal without being residents or declaring income tax, as long as they can provide proof of income from abroad.

00:55Interest rates in Portugal are expected to decrease in the next few years, making it a more affordable option compared to other countries.

01:25Raphael explains his role as a mortgage broker and the importance of working with a professional throughout the process.

02:30Eligibility for a mortgage in Portugal is based on factors such as regular income, a minimum down payment of 20%, and a low debt-to-income ratio.

04:05Raphael provides an overview of the mortgage application process, from the initial interview to gathering the required documents for pre-approval.

06:21Raphael discusses the different types of interest rates available in Portugal and the benefits of fixed and variable rates.

07:55Securing a property in Portugal involves signing a promissory contract and going through a thorough approval and appraisal process.