Apply for credit
How long does the whole process usually take?
From handing over documents to completion, a mortgage usually takes 30 to 60 days. The bank’s approval and the property appraisal are the…
25 March 20261 min read
GUIDES
Guides to decide with confidence
Clear explanations of mortgages, rates and the process, without the jargon.
Apply for credit
Which documents do I need to prepare to get started?
To start, you need ID, your tax return, payslips, bank statements, proof of employment and the Bank of Portugal credit-liabilities report.…
25 March 20261 min read
Apply for credit
What are the main steps until I get the keys?
From simulation to completion, a mortgage runs through six stages. The slowest are the bank’s approval and the property appraisal.
25 March 20261 min read
Switch bank
Can the bank change my contract conditions unilaterally?
The spread on your mortgage cannot be changed unilaterally by the bank. Service pricing, such as the current account, can change — with the…
25 March 20261 min read
Apply for credit
What is the FINE, and why should I read it carefully?
The ESIS is the standardised sheet that summarises the cost and terms of each loan offer. It is the only way to compare banks on equal…
25 March 20261 min read
Switch bank
Where can I go if I have a conflict with my financial institution?
Start with the bank's customer support. If that doesn't resolve it, there's the Complaints Book, the Bank of Portugal, and consumer-dispute…
25 March 20261 min read
Costs, insurance & taxes
What are the bank and notary costs?
Beyond the deposit and taxes, buying with a loan brings bank costs (assessment, appraisal, insurance) and notary and registration costs.…
25 March 20261 min read
Costs, insurance & taxes
Which taxes do I have to pay to the State at purchase?
On purchase you pay two taxes: IMT, which varies with value, location and use, and stamp duty at 0.8% of the price. The loan itself carries…
25 March 20261 min read
Before buying
Do I always need a 10% down payment?
As a rule, yes: banks finance up to 90% of the property's value, so you need around 10% of your own capital. There are exceptions — and…
25 March 20262 min read
Costs, insurance & taxes
Are there exemptions for young buyers or first home purchase?
Buyers aged up to 35 purchasing a first own permanent home can be exempt from IMT (transfer tax) and stamp duty. In 2026 the exemption is…
25 March 20261 min read
Apply for credit
Can I apply for a construction loan, or only to buy a ready home?
You can borrow both to build and to buy a finished home. With a build, the money is released in stages, as the works progress.
25 March 20261 min read
Switch bank
Can I repay my loan early? What penalties apply?
You can repay the loan, in full or in part, at any time, giving the bank seven business days' notice. The maximum fee is 0.5% on a variable…
25 March 20261 min read
GLOSSARY
Mortgage glossary
The essential mortgage terms, explained in plain language.
Debt Service-to-Income. The ratio between the household’s monthly loan repayments and its net monthly income. Banco de Portugal recommends keeping it under control when assessing new loans.
Euro Interbank Offered Rate. The reference rate at which banks lend to each other; it is the most common index for variable-rate mortgages (3, 6 or 12 months).
A person who takes responsibility for repaying the loan if the borrower fails to. It strengthens the security behind the operation.
Loan-to-Value. The ratio between the loan amount and the lower of the purchase price and the property valuation. For a first home as your main residence, the recommended limit is 90%.
Total Amount Payable by the Consumer (Montante Total Imputado ao Consumidor). The sum of everything the client pays over the life of the loan: capital, interest and charges. A key indicator of the overall cost.
The margin the bank adds to the index (Euribor) on a variable rate. The lower the spread, the lower the cost to the client.
Taxa Anual de Encargos Efetiva Global, the Portuguese Annual Percentage Rate of Charge. It reflects the total cost of the loan (interest, fees, insurance and taxes) as an annual percentage, so you can compare offers.
Taxa Anual Nominal, the nominal annual interest rate. The base interest rate of the loan, before other charges. It can be fixed, variable (Euribor + spread) or mixed.