How much can I borrow for a mortgage in Portugal?

Movingto Editorial Team
December 18, 2022

If you're contemplating buying property in Portugal and wondering, "How much can I borrow for a mortgage in Portugal?" you've landed in the right place. This comprehensive guide will answer your query and provide you with the essential information you need.

Factors Influencing How Much You Can Borrow

The amount you can borrow for a mortgage in Portugal is determined by several factors, including your income, debt-to-income ratio, credit score, and the type of mortgage you choose. Lenders evaluate these aspects to decide how much they're willing to lend you and at what interest rate.

Typical Borrowing Limits

Generally, most lenders in Portugal permit you to borrow up to 80%-90% of the property's value. This implies you'll need to have a down payment of at least 10%-20% of the purchase price. However, a larger down payment may be necessary if you have a low credit score or a high debt-to-income ratio.

Calculating Your Borrowing Capacity

The maximum amount you can borrow also depends on your ability to make the monthly mortgage payments. Lenders consider your income, expenses, and other debts to determine your borrowing capacity. Using a mortgage calculator or consulting with a financial advisor or mortgage broker can provide an idea of how much you may be eligible to borrow based on your unique circumstances.

The Mortgage Application Process

Applying for a mortgage in Portugal involves several steps, including researching and comparing mortgage products, gathering documentation, submitting your application, and more. After your application is approved, you will receive a mortgage offer, which you can negotiate. Once all terms are agreed upon and the necessary documents are signed, the mortgage will be finalized, allowing you to purchase your desired property​.

Need More Assistance?

If you have more questions or need further assistance in navigating the mortgage application process in Portugal, feel free to reach out to our team at Movingto. We're here to help you make your dream of owning property in Portugal a reality.

Contact us today for personalized advice and guidance on your journey to homeownership in Portugal.

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