There has never been a better time to invest and live in Portugal. Although Portugal has always been on improving its social and economic condition, presently, it is one of the cheapest countries to live in. Often, cheapness comes with low quality in life elements such as health and education. But Portugal not only thrives in quality education but also in healthcare. In essence, with a good and strong economy, the property sector also enjoys superb benefits.
An Overview of Mortgages in Portugal
Portugal being a preferred destination for expats and foreigners alike, the property market is always in the business. For this, mortgages are also in the market that are financed by banks. Both Portuguese residents and non-residents can apply for property mortgages through banks.
Each country, region, and place follows its standard mortgage rules and regulations. In Portugal, the mortgage amount you can borrow depends on the ratio of the loan amount to the value of property that is pledged as collateral.
If you own a property in another place apart from Portugal, you can choose to either take out another mortgage or have a new one in order to finance your purchase of property in Portugal. But since Portugal’s economy is on the mend and rising, you will find lenders assisting and helping foreigners in lending solutions.
Benefits of Moving to Portugal
Portugal is not all about a holiday destination but a place where you can find the actual meaning of a happy life. And you can expect a lot of spectacular options when you move to Portugal.
· Quality Life
Portugal is known for its pleasant climate and atmosphere. With beautiful beaches and landscapes, it provides a splendid quality of life.
· Low Cost of Living
An affordable lifestyle is one of the best trademarks of Portugal. This is why expats love and enjoy living in Portugal since living there does not force them to break the bank.
· Atmosphere and Environment
Regarded as one of the safest places in the world., Portugal offers its residents the best environment to thrive. Also being one of the safest countries in the world, you can enjoy a comfortable life here.
· Citizenship
Portugal offers residential options and freedom to its expats. It further improves the pathways to citizenship alongside its Golden Visa program with other immigration sources.
· Education and Healthcare
For families and retirees, good education and affordable and quality healthcare is essential. Thanks to Portugal, it is all an accessible reality with ease.
· Exploration Opportunities
Given Portugal’s geographical location, it sets you at the perfect place to begin further exploration into other countries and cities of Europe.
Benefits of Taking Portuguese Mortgages
The Portuguese mortgage system is different from other countries. You will find top-notch assistance from lenders in finding all the possible solutions for you. When it comes to the benefit of the Portuguese mortgage system, you will find lenders carrying out different legal checks on your property to provide you with the actual mortgage valuation and even make arrangements for it.
Mortgages can be thought of as an investment-benefitting tool. If you decide to put your property in short or long-term contracts, the rental income can be beneficial in reducing or paying off your mortgage loans.
Other benefits of taking Portuguese mortgages include:
- Low rates
- If you are a foreigner with no property in Portugal, still you can obtain a mortgage from a Portuguese bank
- You can easily rent out any of your property purchased on a credit card without any restrictions
- Low mortgage instalment rates
Portuguese Mortgage Types
There is no one type of mortgage plan that you have to strictly abide by. You can select from any one of the below:
1. Fixed Rate Mortgage
As the name suggests, the fixed-rate mortgage involves the borrower paying a fixed amount in the plan for a fixed period. At best, this type of mortgage prevents you from any fluctuations in the European base rate.
2. Variable Rate Mortgage
In a variable rate mortgage system, the amount of mortgage repayment is based on a housing loan indicator index, usually known as Euribor. The amount to pay each month is revised every six months based on the Euribor rates. However, if you decide to repay before the actual time, you will be charged 0.5 per cent on the repaid capital.
3. Mortgage for Retirees
In Portugal, retirees can also enjoy mortgage facilities. They can apply for a mortgage only in case they have a fixed or regular pension income.
4. Mortgage for Businesses
You can enjoy a mortgage for any of your business ventures such as starting a restaurant or a shop. You can get financing of up to 50 per cent of the property price or valuation if lower.
Why work with Portugal Residency Advisors?
- Local Expertise
We know Portugal. Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information.
- Holistic Approach
One single channel of communication for the entire process. We provide you with a comprehensive service that covers all aspects of your move, from identifying the ideal residency visa to finding your new home or helping you to settle.
- Transparent Service
We recommend what’s best for you based on an extensive process experience that saves time and money for clients. Our pricing is clear and competitive, and we don’t sell services that make us more money.
- Simple Process
Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. We are customers ourselves and we know how to serve you.
Frequently Asked Questions About Mortgages for Foreigners
- How much do I need to deposit for a mortgage?
For a Portuguese mortgage, the deposit is at least 30 per cent of the purchase price for non-residents.
- What is the mortgage duration period in Portugal?
In general, most mortgages for residents are between 25 to 30 years old in Portugal.
- What are the different costs of taking a mortgage in Portugal?
The costs are:
- Application fee= €290
- Bank valuation fee= €280
- Stamp Duty Tax= 0.6% of the mortgage amount
- Notary, Registry & Tax Office fee= €1,200
