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 there is more to budget than the deposit.
In this guide
Where the 10% comes from
The Bank of Portugal's recommendation caps financing (the LTV ratio) at 90% for an own permanent home — and 80% for a second home or investment. The 90% is where the 10% rule comes from: the bank lends up to 90% of the lower of the purchase price and the appraisal, and the rest is yours.
Which value it is calculated on
The deposit is worked out on the lower of the purchase price and the bank's appraisal. If the appraisal comes in below the price, your effective deposit rises. That is why the appraisal can change the maths — and is worth anticipating.
The exception: the State guarantee
There is a no-deposit route: the public guarantee for buyers under 35 allows financing 100% of the purchase. In 2025, a significant share of credit for own homes already exceeded the 90% cap under this scheme.
The deposit is not the only cost
Beyond the deposit, budget for taxes (IMT transfer tax and stamp duty), the deed, registrations, the appraisal and fees — plus a safety margin. The right question is not just whether you have 10%, but how much you need, in total, to move forward with room to spare.
Worked example
For a €200,000 property (example figures): the bank finances up to 90% — €180,000 — so you need a €20,000 deposit. But add the costs: transfer tax (IMT), stamp duty, the deed and registrations can reach 8% of the price (up to about €16,000). All in, plan for close to €36,000 on hand, not just the €20,000 deposit.
Sources
Susana Vasconcelos
- Intermediária de crédito autorizada pelo Banco de Portugal n.º 0008496
- Mais de 10 anos na banca