Can I transfer my mortgage to another bank?

How does a transfer work?

To change bank, you repay the whole loan to the old bank. The new bank pays it, with the new loan.

After your request, the old bank has 10 business days to inform the new bank. For example, how much you still owe and how much of the contract has already run.

The old bank may ask for 10 business days' notice before full repayment. After that, it has 14 business days to issue the release statement («distrate»), which confirms the debt is over.

How much does a transfer cost?

The old bank may charge:

• a fee of up to 0.5% of the amount owed on a variable rate, or 2% on a fixed rate;
• expenses it paid for you to registries, notaries or the tax authority;
• interest up to the day you pay.

The new bank also has costs to set up the loan, such as fees and a valuation. There is also stamp duty: 0.6% of the amount, for terms over 5 years.

What happens to my insurance?

Your insurance stays valid, as long as the risks covered do not change. The new bank may require insurance. But it must accept a policy from another insurer if it gives equivalent cover.

Does the new loan follow the same rules?

It is a new contract. So the new bank checks again whether you can repay. The Banco de Portugal limits for new loans apply. For example, an affordability ratio of up to 45% and the maximum term for your age.

Can I renegotiate instead of transferring?

You can try your own bank first. See Can the bank change my contract conditions unilaterally? A renegotiation only goes ahead if you both agree, and it has no fees. If the bank refuses, you can look for better terms elsewhere.

An example with the sums

You owe €150,000 over 25 years. Euribor is at 2% and the spread is 1.3%. The interest rate is 3.3% and the repayment is about €735.

Another bank offers a spread of 1%. The rate becomes 3% and the repayment about €711. You save about €24 a month, or €7,088 over 25 years.

The costs add up to €2,650: €750 in fees (0.5%), €900 in stamp duty and €1,000 in other costs. At €24 a month, you win back what you spent in about 9 years.

It pays off, but slowly. These are example figures, with Euribor unchanged for the whole term.

Where FINOVA helps

We ask several banks for offers and work out the transfer with you. See the mortgage transfer page. Our fee is paid by the bank.

See also What is the Spread, and how can I reduce it?

Sources

• Banco de Portugal — How to repay and transfer
• Banco de Portugal — Want to change your home loan terms? Four rules you need to know (in Portuguese)
• Banco de Portugal — How to enter into home loan agreements
• Banco de Portugal — Interest rates in home loans
• Banco de Portugal — Creditworthiness assessment

Sources checked on 22 September 2026.