Is it possible to apply for a mortgage to buy a house in Portugal as a foreigner?

The answer is yes, it is possible for foreigners to obtain financing to buy a property in Portugal. Both residents and non-residents can apply for housing loans from Portuguese banks, as long as they meet the requirements set by the financial institutions.

With attractive interest rates, the Portuguese market offers good conditions for those wishing to invest or live in the country, considering that the purpose of the house can be for own habitation or for investment.

General Conditions for Obtaining Financing

1. Entry percentage:
   • The down payment for the purchase of a property generally varies between 10% and 45% of the price of the property. This percentage depends on the applicant’s financial profile, the type of property and the bank chosen.
2. Competitive Interest Rates:
   • Portugal offers very attractive interest rates for home loans, which makes the country an excellent option for both investment and home ownership.
3. Documentation required:
   • It is essential to submit a detailed financial analysis, including income, assets and other personal and tax information, whether in Portugal and/or abroad. Each bank will have specific criteria for approving a loan, depending on the specific situation.

Why Consult a Credit Intermediary?

Credit intermediaries play a crucial role in this process. They help to:

• Identify the best financing conditions at different banks.
• Avoid limiting the applicant to just one institution (such as the bank where they already have an account).
• Ensuring a more agile process aligned with the client’s financial needs.

By consulting several banks, the intermediary increases the chances of finding an advantageous solution tailored to each client’s specific situation.

Stages in the process of acquiring a property with financing

1. Analysis and Approval of Financing:
   • First of all, it is best to consult a specialized professional to check the documentation and obtain a financing proposal. This step defines the limit of the amount to be financed.
2. Property search:
   • Once the financing amount has been set, the client can look for the property they want, whether it’s a home or an investment.
3. Promissory Contract of Purchase and Sale (CPCV):
   • Once you have found the property, you need to sign the CPCV. This contract is essential to guarantee security for the parties and minimize risks, especially in the case of a mortgage purchase.
4. Bureaucracy and legal deadlines:
   • During the process, bureaucratic requirements must be met, such as the validation of documents and compliance with the deadlines defined in the CPCV and by the financing bank.
5. Deed:
   • Once the financing has been finally approved and all the requirements have been met, the process ends with the signing of the deed of sale.

Relying on the support of an experienced lawyer is essential to ensure that all stages of the process take place safely. A specialized professional can:

• In addition to advising and representing the client at specific stages of the process, if the client is not present in Portugal.
• Analyzing and drafting the Promissory Purchase Agreement, reducing legal risks.
• Advising on legal and bureaucratic requirements.
• Monitoring the signing of the deed, ensuring that the client’s interests are protected.

Conclusion

Acquiring a property in Portugal with bank financing is a viable and advantageous option for foreigners, whether they are residents or non-residents. With competitive interest rates and flexible conditions, you can fulfill your dream of living or investing in Portugal.

Be well informed and advised and realize your dream of owning a property in Portugal