Buying a home with a mortgage in Portugal requires a careful analysis of several legal, financial, and contractual aspects. Check here for everything you need to know, step by step, to make more informed decisions:

Thus, those eligible to apply for a mortgage in Portugal are:

Portuguese citizens and foreigners (even non-residents), with proven income and a good credit history (verified via the Bank of Portugal – Credit Responsibility Center).

The documents required to apply for a mortgage for individuals (e.g., couples or individuals) are a citizen card or passport, NIF (Tax Identification Number), proof of address, proof of income, the last three pay slips, IRS (Income Tax) statement + settlement note, employer’s statement, bank statements from the last three to six months, and a credit liability statement (Banco de Portugal).

Self-employed workers require a Declaration of Commencement of Activity, quarterly and annual VAT and IRS (Income Tax) statements.

These are the standard mortgage loan terms:

Various types of interest rates apply.

Variable rate

Indexed to Euribor (6 or 12 months)

Varies over time (cheaper initially, but less predictable)

Fixed rate

Interest rate remains stable throughout the contract.

Full predictability, but generally higher initial rate.

Mixed rate

Starts with a fixed rate (e.g., 5 years), then becomes variable.

In this table, you can see the entire process step by step:

1. 1. Initial simulation: with several banks.(we do it for yourself)
2. 2. Pre-approval (optional): the bank analyzes your financial capacity.
3. 3. Submission of documentation.
4. 4. Property appraisal: the bank orders an appraisal of the property.
5. 5. Final approval and signing of the loan agreement.
6. 6. Public deed of purchase and sale (with loan disbursement).

The costs associated with mortgage loans are as follows:

Stamp duty: 0.6% of the loan amount

Assessment fee: €200–€300

Formalization fee (dossier): €200–€500

Mandatory insurance:

Life insurance (for death or disability)

Multi-risk mortgage insurance

If you wish to make an early repayment of the contracted capital, you can do so with these maximum penalties: 0.5% of the repaid capital (variable rate) or 2% of the repaid capital (fixed rate).

Credit consumers in Portugal are protected by law by consumer rights.

According to Decree-Law No. 74-A/2017, banks are required to provide the European Standardized Information Sheet (ESIS), inform the customer clearly and transparently, guarantee a minimum seven-day cooling-off period before signing, and assess the customer’s creditworthiness (it is not legal to lend if the customer is unable to repay).

Trust Financing is a credit broker company registered with the Bank of Portugal under number 8274. We are accredited and available to assist and advise you throughout the process.