According to Knight Frank analysts, over the past year Portugal has become one of the three European countries where the fastest growth in property prices was recorded, behind only the UK and Germany. It is obvious that Portuguese real estate today is good not only for obtaining a "golden visa", but also as an excellent option for investment. A big advantage for many foreigners is the fact that in this country, mortgages for the purchase of real estate can be obtained not only by local citizens, but also by non-residents. Moreover, not all home buyers can afford to pay the entire required amount at once.
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Mortgage loan amount
Today banks in Portugal provide loans to non-residents (including Russians) secured by the purchased property in the amount of up to 70% of the value of the property appraisal. Usually, the size of the initial payment for housing when buying real estate by foreigners varies from 30% to 50% of the value of the object. At the same time, banks issuing mortgages always resort to the services of an independent real estate appraiser, which are paid by the person being credited.
Payment terms
As for the term of the mortgage payment, it can be up to 40 years. It can be issued by people aged 21 to 75 years, but at the time of repayment of the loan, the age of the borrower must not exceed 75 years. For example, if the borrower is 40 years old, then the bank can provide a mortgage with a maximum term of 35 years. If there are several borrowers, the calculation is made based on the age of the oldest of the loaned persons. At the same time, the monthly loan payment under the laws of Portugal cannot exceed 35% of the borrower's monthly income.
Betting
Now in Portugal the average rate is 3.31% per year. It is calculated based on the official interest rate EURIBOR set by the European Central Bank (ECB) and the commission of the bank issuing the mortgage loan. It can vary from 2 to 4.5%. At the same time, there are two types of mortgage rates in Portuguese banks: floating and fixed. With a floating rate, the amount of the bank commission remains unchanged. URIBOR can be changed by the ECB in the direction of decreasing or increasing depending on the state of the financial market and is reviewed by the European Central Bank every 3, 6 or 12 months. As for the fixed option, then its interest on the loan is fixed at the time of obtaining the mortgage and remains unchanged throughout the entire term of the loan. But there are also cases of a mixed type of rates - first fixed and then floating, according to the terms of the agreement.
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Consideration of the application
The processing time for a mortgage application usually ranges from three weeks to two months. A positive decision of the bank depends on the level of income of the loaned person, his age and the condition of the property, for the acquisition of which the mortgage is requested. At the same time, for some banks there will be a fundamentally certain type of income than in others. Therefore, before applying for a loan, it is very important to consult in advance with a specialist who, based on the specific situation of the real estate buyer, will choose the bank that is optimal for such a case, for obtaining a mortgage loan
All conditions of the relationship between the bank and the borrower must be recorded in the Companies House (Сonservatria do Registo Predial). A prerequisite for banks when registering a mortgage is insurance of the acquired property. In addition, the bank may insist on the issuance of a life insurance policy by the borrower.
Required documents
The package of documents required for obtaining a mortgage loan is provided with translation into Portuguese with subsequent notarization. It may be different depending on a specific bank, but an approximate list is as follows:
- photocopy of your passport with a valid Schengen visa
- individual tax number (NIF)
- bank statement on the state of the borrower's account
- income tax return for the year
- certificate from the place of work or a copy of the state registration of entrepreneurial activity
- information on the amount of wages and cash flow on the account for three months
- proof of residence (receipt for payment of utilities, extract from the House Book, etc.)
- applicant's credit history
- documents confirming the legal and technical condition of the acquired real estate (extract from the Property Register, cadastral certificate, housing certificate, certificate of suitability of housing, documents of the seller and his representative).
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Additional features
In Portugal, it is possible to revise the terms of the mortgage: the term can be extended or a deferral can be obtained for the loan repayment, the bank's commission when the client completes additional services (issuing a credit card, time deposit, opening a retirement savings account), combining several loans into one to reduce the monthly credit load.
Portuguese banks offer not only loans for the purchase of real estate, but also for its construction and repair work. Benefits are also provided for payments during the first years during construction and reconstruction. There is also the possibility of re-registering the mortgage agreement for another person - this may be necessary in the case of real estate sale. The subsequent owner in this case saves money and time, but also receives fixed terms and amounts of mortgage payments without his participation.
Thank you for your help in preparing the material:
Evgeny Berezin, CEO of MENU Portugal
Oksana Mateusz, CEO of Riviera Portugal
Oleg Ra ylya , partner of Amber Star Real Estate
