Mortgages for non-residents in Portugal: what banks actually ask for

The question we hear most: "as a foreigner, can I get a mortgage in Portugal?" The short answer is yes — but the terms differ from a resident's, and it's worth knowing that before you pick the house.

How much they lend

For residents, banks typically finance up to 80–90% of the value. For non-residents, the norm is up to around 70% — meaning you need at least a 30% down payment available, plus purchase costs (IMT, stamp duty, notary, registration).

The bank lends against the lower of the purchase price and its own valuation. If the valuation comes in below the price, the gap comes out of your pocket.

Rate: fixed or variable?

There are two families:

• Variable — indexed to Euribor plus the bank's spread. It rises and falls with the market.
• Fixed — the same instalment for a set period. You pay a little more for predictability.

Which to choose isn't a matter of fashion — it depends on your horizon and risk tolerance. A good mortgage broker compares several banks for you; rarely is it worth knocking on just one door.

Documents they'll ask for

• Passport and NIF.
• Proof of income (payslips, home-country tax return, employment contract).
• Bank statements for the last few months.
• A credit-liabilities report from your country.

Documents in another language usually need translation. Prepare this upfront — it's what delays processes most.

A "yes, it can be financed" on the phone is not an approval. Approval is in writing, with an amount, a rate and a term.

Pre-approval: the step that saves grief

Before signing the CPCV, ask for a pre-approval. That way you know how much the bank truly lends and you don't risk losing your deposit because the loan didn't come through in time. The CPCV can also include a financing-condition clause.

The loan's own costs

Beyond the down payment, the loan has its own costs: valuation fee, arrangement fee, stamp duty on the financing and, often, associated life and building insurance.

Next

See the full process from CPCV to deed and all the costs of buying. Need a broker you can trust? Talk to us.