What does it mean to transfer a mortgage loan?
This is an operation in which you pay off (pay off) the amount owed to your current bank and take out a new mortgage loan with another institution (or even with the same bank, under a new proposal) to continue paying for the property.
This new contract may involve better conditions with regard to a lower spread, a different fixed or mixed rate or a different term.
According to the Bank of Portugal, you can do so at any time (at any stage of the contract) as long as you communicate correctly and legally.
However, you must bear in mind some conditions and costs that you may have to bear.
In this context, pay attention to some factors:
The old bank may charge a commission for full or partial early repayment (when you settle the debt before the due date or transfer the debt).
For variable rate loans, the maximum allowed is 0.5% of the repaid capital.
For fixed rate loans, the maximum allowed is 2% of the repaid capital.
Please note that, for certain cases of permanent home ownership with a variable rate, this commission may be exempt until 31 December 2025.
Talk to Trust, we’ll help you with a simulation, and after evaluating the best options on the market, we’ll support you through every stage of the process.
Our work is completely free off charge for you.
