If you are looking for a mortgage loan for the property of your dreams abroad, you might encounter some resistance from your trusted bank. If you think about it, from the banker's perspective, this makes total sense. If your bank is not active in Portugal, they don't have the knowledge of the local housing market, they are not familiar with local legislation and even more, they will have a hard time to do any checks themselves.
It should be clear that even if they agree to a mortgage loan, it might require additional costs. So be sure to check out the Portugese alternatives too!
How do these Portugese loans differ?
To keep things short: they don't. Or at least, not that much. The only real differences are the procedure and the location where these loans are offered. Everything else works pretty much the same way it does anywhere else in the world:
- There are dozens of configuration options:
- Fixed or variable amounts/month
- Fixed or variable duration
- Fixed or variable rate
- Options for early buy-out
- Options to use part of the funds for construction costs
- And the costs involved depend on parameters like:
- Kind of rate you chose
- Duration of the contract
- Period with a fixed rate or not
- The total amount
- Costs of deeds and procedures
- Intended destination of the property (permanent or second home?)
A Portugese bank will need various documents to complete your application. This may differ a little between banks, but most of the time the following documents are required at least:
- Legitimation (copy)
- Numero de contribuinte (fiscal number)
- Prove of your current adress
- Prove of your income
- Your tax declaration.
If these documents are not provided to you in Portugese, English of French, you have to get them translated. This has to be done by a confirmed translator or the Portugese consulate. You'll have to pay for this yourself.
Do I need to make a visit to all the local banks?
You can, but you don't have to. There are companies that can request and compare different offers at once. If you are working with a real estate agent of relocation company, you can often ask them as well. Search for the service 'mortgage loans' in our partner section!