 Finance
- Mortgage
Once you have located the property
of your dreams you may realise that you have not
given sufficient thought to the financial aspects
of the purchase or find that the price may require
additional financing. Mortgage financing is available
in Portugal from various reputable sources, and
as elsewhere, can be tailored to suit individual
requirements and compared for their competitiveness.
A range of financing options is available for
buyers with sufficient income to service a loan.
For Portuguese residents, Euro mortgages can be
obtained for up to 90% of the property value.
For non-residents, mortgages are available in
any major currency for up to 75% of the property
value or purchase price.
For Portuguese residents
For buyers living and working
in Portugal, mortgages are readily obtainable
from Portuguese banks for up to 90% of the property
value, subject to income verification. Tax returns
are required for this purpose. Loans are variable
rate in Euros and from 1 to 3% over the prevailing
LISBOR or EURIBOR rate. Portuguese banks will
often offer low fixed rate interest repayments
for an initial period.
For non-Portuguese residents
For non-residents of most nationalities,
mortgage financing is readily available in any
major currency from a number of specialist lenders
for up to 75% of the property value, subject to
income verification.
Income can comprise earned income together with
pension, investment or rental income. However,
it is not always the case that a lender will consider
all sources of income when determining the maximum
amount of loan available.
General
In certain cases, institutions
in the buyer's home country, such as Building
Societies may provide finance for the purchase
of property in other countries. In general, these
require that you are able to finance at least
40 to 50% of the value of the property yourself.
For those who are willing to use their own property
as security for the loan, virtually no capital
at all is required to purchase a property in Portugal.
One should be aware of the fact that your application
for finance will result in a variety of "additional"
costs that will have to be borne. These range
from the cost of a formal survey by the surveyors
of the financial institution to whom you have
made an application, to the fees for administration
of the loan also. In addition there are likely
to be a variety of other formalities.
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