Updated: November 25, 2024
Portugal Property Mortgage Calculator
Remember that banks usually ask for a minimum contribution of 10% plus fees.
You need to cover the minimum contribution required by the banks.
Are you considering buying property in Portugal? Whether you are relocating to Portugal or intend to purchase an investment property, one of the first steps to take is to understand how you will finance this purchase.
If you are taking out a mortgage loan, this Portugal mortgage calculator will help you decide what you can comfortably afford.
While this mortgage payment calculator only estimates what your monthly payments would be for your mortgage, it factors in all your relevant information and the current Portugal mortgage rates to ensure the estimation is as accurate as possible.
Read how it all works below.
How to use the calculator
Use our Portugal Mortgage Calculator to quickly get the best estimate of what your mortgage payments will be by adding your key loan details to the tool.
Please note that all fields must be completed to get a detailed simulation of your mortgage loan.
Here’s how the Portugal mortgage calculator works
- Property price: Enter the full purchase price of the property
- Deposit: Specify your deposit as a percentage or an amount in euros
- Loan term: Set the number of years you need to repay the mortgage loan comfortably
- Interest rate: Choose between a fixed or variable interest rate, bearing in mind that the fixed rate offers stable payments, while the variable rate will fluctuate based on market conditions
- Property location: Select the location from the dropdown menu
- Type of home: Choose between main residence or secondary residence
- Calculate: Once all your details are loaded, click Calculate
Interest Rate Options
When using the Portuguese mortgage calculator, you can choose between two types of interest rates: Fixed rates and variable rates.
A fixed interest rate will remain the same for a set period, usually two to five years. The benefit of choosing a fixed rate is that your mortgage payments will be stable, and you will not be affected by any increase in mortgage rates due to market fluctuations. The downside, however, is that if market conditions allow the rates to decrease in this period, your mortgage payments will not decrease either.
A variable interest rate will fluctuate based on market conditions. This means your payments could increase or decrease with the interest rate fluctuations over the loan period.
Deposit Requirements
The minimum deposit is the down payment required when taking out personal loans for property purchases. This will differ for Portuguese residents and non-residents. Residents will need a minimum deposit of 10 percent, meaning you can borrow up to 90 percent of the purchase price.
For non-residents, a minimum deposit of 20 to 30 percent is usually required, meaning banks will lend 70 to 80 percent of the purchase price. This is important to keep in mind when setting your deposit amount in the mortgage calculator.
Property Type
Whether you are using the mortgage calculator for rental property or for your primary residence matters because the property type could affect the deposit amount and mortgage loan payments.
If the property is your primary residence, you may benefit from more favorable terms, including lower interest rates and higher loan-to-value (LTV) ratios. Suppose the property you are purchasing is a secondary residence or an investment property. In that case, there may be stricter terms on your loan, including higher interest rates or larger deposits to make up for the increased risk.
Mortgage Types
There are two main types of mortgage loans available in Portugal, namely, a capital repayment mortgage and an interest-only mortgage.
A capital repayment mortgage is the more common type, where you repay a portion of both the capital amount and the interest over time, and the balance decreases with each payment.
An interest-only mortgage is rare in Portugal and usually applies to short-term property investments. This type of mortgage loan allows you to repay only the interest at first, and the capital amount is later paid in full.
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What is a capital repayment mortgage?
This is the most common type of mortgage loan in Portugal, where your monthly loan payments cover a portion of the capital amount along with the interest.
Can I get a mortgage in Portugal?
Whether you are a permanent resident, expat, or foreign investor purchasing property from abroad, you are likely to successfully get a mortgage loan from a Portuguese lender if you have a good credit score and financial history, and a reliable source of income. Using a Portugal mortgage calculator for foreigners will help you estimate your mortgage.
How to get a mortgage in Portugal?
You will need to apply for a mortgage loan with a bank or mortgage broker in Portugal and follow their screening and application processes. Some of the major Portuguese financial institutions to approach are Santander, Novo Banco, BBVA, Bankinter, and EuroBic. You can find out more about the process in our detailed article about how to get a mortgage in Portugal.
Enlisting the help of a buyer’s agent can also help speed up the process of getting a mortgage and securing your property purchase.
What is the mortgage interest rate in Portugal?
Mortgage rates in Portugal can range from 1 to 8 percent but currently tend to average around 3 to 5 percent, depending on factors like the property’s value, the size of the deposit, your financial history and credit report, and the type of mortgage.
Foreign buyers might also face slightly higher rates due to the increased perceived risk, however, most leading mortgage lenders tend to offer very competitive rates.
