7 Steps to Get a Portugal Mortgage: Your Quick Guide

Everything you need to know about buying property in Portugal. A seven step guide with all you need to take to get a Portuguese mortgage as a local or expat
May 31, 2023
Ana Fankhauser
May 31, 2023

Step 1: Determine Your Financial Budget and Limits

Before you apply for a mortgage, you need to know what your budget is and what your financial limits are. This can help you figure out how much you can afford to borrow and give you a better idea of the costs of buying a home in Portugal, such as closing costs, property taxes, and insurance.

Step 2: Compare and research mortgage products and interest rates

There are many types of mortgages available in Portugal, such as fixed-rate, adjustable-rate, and interest-only mortgages. It is prudent to browse around and compare prices to discover the greatest offer.

Step 3: Collaborate with a Mortgage Broker or Lender to Finish the Mortgage Application Process

A mortgage broker can help you find the best mortgage package for your needs and guide you through the mortgage process. Alternatively, you can apply directly to a lender. In any case, you will have to send the lender an application and the necessary paperwork.

Step 4: Provide the Lender with the Necessary Records

This may include pay stubs and tax returns as proof of income, a passport or national identification card as proof of identity, and bank statements and credit reports as proof of finances. You may also have to show paperwork about the property, like the deed and any appraisals. Learn about all the necessary documents you might have to provide.

Step 5: Maintain sincerity and openness throughout the mortgage process.

Lenders will carefully look over your financial information to figure out how creditworthy you are. If there are any mistakes or discrepancies, your application could be turned down.

Step 6: Await the lender's review of your application and approval decision.

The mortgage approval procedure in Portugal might take between a few weeks and many months, depending on the lender and the complexity of your financial situation. We recommend to do that before you put any deposit or reservation fee on a property.

Step 7: Sign a Mortgage Contract and Pay Any Closing Costs or Fees Upon Approval

After you sign the mortgage contract, you can finish the loan and become a homeowner in Portugal.

Frequently Asked Questions

How long does it take to obtain mortgage approval in Portugal?

‍Depending on the lender and the complexity of your financial circumstances, the mortgage approval procedure in Portugal can take anywhere from a few weeks to several months.  Start the process as soon as possible to make sure that you have enough time to get approved and close on the loan before the date you want to close.

What is the minimum required down payment on a mortgage in Portugal?

Different lenders and mortgage programs in Portugal have different minimum down payment requirements. Some lenders may need a 20% or greater down payment, while others may accept a smaller amount. Before you start the mortgage application process, you should talk to your lender about the down payment requirements.

Can a non-resident obtain a mortgage loan in Portugal?

If you don't live in Portugal, you can still get a mortgage, but you may have to go through more steps and find it harder to be accepted. Non-residents may be required to produce additional paperwork and make a larger initial deposit. As someone who doesn't live in the country, you should talk to a mortgage broker or lender about your options.

Can I obtain a mortgage with a poor credit score in Portugal?

With a low credit score, it is possible to get a mortgage in Portugal, but it may be harder to get approved and the interest rates may be higher. It is worthwhile to pursue.


If you work with a  mortgage broker, you can make sure you have all the paperwork you need to get a mortgage. You could also get tax exemptions, as they have a wide knowledge of all the Portuguese laws and current deals. Also, if you have an NHR, your mortgage can potentially change. By being organized and well-prepared, you can make it easier to get a mortgage in Portugal and get one step closer to owning a home. If you are a first-time buyer or a pensioner, we recommend that you get a mortgage broker. Try our free mortgage broker today.

Written by
Author's profile picture

Ana Fankhauser

Ana has worked in many startups and moved to a few countries, which led her to create MovingTo. She believes that remote work is a growing trend that is here to stay and that digital nomads will move to countries that have more to offer than the ones you were born into. She mostly writes opinion pieces for MovingTo.

Connect with Ana on LinkedIn
Share this post
Share tips, news, insights with the Movingto community on Facebook. It's completely free.
Join our Facebook Group
Check it out
Ana Fankhauser
movingto facebook group

Join our Facebook Group

Share tips, news, insights with the Movingto community on Facebook. It's completely free.