Buying a home with bank financing in Portugal involves several formal steps. See the steps below for the entire typical process for Portuguese citizens and foreigners (residents and non-residents).
1. Assess financial capacity
First of all, evaluate:
- Monthly income and professional stability
- Savings for initial deposit (minimum 10-20%) and associated costs
In Portugal, banks typically finance up to 90% of the home’s value (or up to 80% for non-residents).
2. Choose the property and obtain the documentation
You need
- Promise of purchase and sale (promise contract)
- Urban property register (property tax information)
- Permanent certificate of land registration (ownership and charges)
- Usage license and energy certificate
3. Request credit simulation and approval
Contact us and:
- Request our mortgage loan simulations
- we Compare: interest rate (spread), APR, MTIC, mandatory insurance, terms
- Prepare documents (we help with obtaining them)
Documents generally required:
- Identification (ID or passport)
- Proof of income (pay slips, IRS)
- Employer’s statement
- Bank statements
- Fiscal number
- Proof of address
- Document from the Bank of Portugal (Certificate of Credit Liability)
Foreign citizens also need a Portuguese NIF and a local bank account.
4. Property valuation by the bank
the bank will
Send an expert to evaluate the property- Confirm that the value of the property justifies the loan amount
5. Sign a promise contract and pay a deposit
As a rule:
- The Purchase and Sale Promise Agreement (CPCV) is granted with a deposit (10% to 20%).
6. Final approval of credit and deed
After final approval:
- Signing of the housing loan agreement
- Marking of the public deed of purchase and sale (usually done at the registry office or notary)
7. Costs to consider
- IMT (Municipal Transfer Tax)
- IS (Stamp Duty)
- Notary and registration fees
- Bank commission for opening credit
- Mandatory insurance: life and multi-risk
Request further clarification on these matters.
Ask a free quote
+351 914 464 444 (WhatsApp)
info@trust-investments.pt
www.trust-Investments.pt
Intermediário de Credito vinculado, registado no Banco de Portugal numero 8274
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