Do I always need a 10% down payment?

Where the 10% comes from

Banco de Portugal recommends that banks limit the share of the home paid for with the loan. For the home you will live in, the bank may lend up to 90% of the value. The other 10% is your deposit.

In the bank's paperwork, the home you will live in is called your own permanent residence. The share of the home paid for with the loan is called LTV. Source: Banco de Portugal — LTV, DSTI and maturity limits.

If you will not live in the home

For a holiday home or a home to rent out, the limit goes down to 80%. The minimum deposit goes up to 20%.

Which value the bank uses

The bank uses the lower of two values: the purchase price and the bank's valuation of the home. If the valuation comes in below the price, your deposit goes up.

An example. You buy the home for €200,000 and the bank values it at €200,000. The bank lends up to €180,000. Your deposit is €20,000.

Now the bank values the home at €190,000. The bank lends up to 90% of €190,000, which is €171,000. To pay the €200,000, your deposit goes up to €29,000. These are example figures.

The exception: the State guarantee for young buyers

There is a State guarantee scheme for people aged 35 or under who buy a home to live in. With this guarantee, the bank may lend more than 90% of the value of the home.

According to Banco de Portugal, in 2025 most of these loans covered 100% of the value of the home. That year, 24% of lending for a home to live in was above 90%. Source: Banco de Portugal press release of 30 March 2026 (in Portuguese).

The bank must explain how the guarantee works and what the risks are, before you sign. See also our guide Are there exemptions for young buyers or first home purchase?

With no deposit, the repayment is higher

The smaller the deposit, the larger the loan. The repayment goes up, and so does your affordability ratio. See our guide What is the effort rate, and what should mine be?

The deposit is not the only cost

On top of the deposit, allow for taxes (IMT and Stamp Duty), the deed, registration, the valuation and bank fees. Keep a margin for surprises as well.

We have a guide for each part: Which taxes do I have to pay to the State at purchase? and What are the bank and notary costs?

How to check whether your deposit is enough

The mortgage affordability calculator shows whether your deposit is enough. It also shows how much of your income the repayment takes.

Sources

• Banco de Portugal — LTV, DSTI and maturity limits
• Banco de Portugal — Press release of 30 March 2026 on the monitoring of macroprudential measures (in Portuguese)
• Banco de Portugal — Press release of 31 December 2024 on the State personal guarantee scheme (in Portuguese)

Sources checked on 19 September 2026.