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Thinking about buying property in Portugal but unsure how to finance it? The good news is that foreigners can get mortgages in Portugal, whether you’re an expat, investor, or non-resident.
Portuguese banks offer financing options for international buyers, usually covering 60–70% of the property value.
In this guide, we’ll walk you through the process step by step—eligibility, required documents, costs, and practical tips—to help you secure the right Portuguese mortgage and make your property purchase in Portugal smooth and successful.
Mortgage Conditions
When you apply for a mortgage in Portugal, banks look at several key conditions. The interest rate can be fixed, variable, or mixed, usually linked to the Euribor plus the bank’s margin. Mortgage terms are generally quite flexible, often ranging from 10 to 30 years, depending on your age and financial profile.
Banks assess lending criteria such as income stability, debt-to-income ratio, and overall financial health. The loan-to-value (LTV) varies: residents may access higher LTVs, while non-residents typically receive financing up to about 70% of the property price.
Most banks also require life insurance, which is tied to the outstanding loan, and home insurance, covering the property’s structure. These policies protect both the borrower and the lender throughout the Portuguese mortgage term.
Benefits of Getting a Mortgage In Portugal
Long Repayment Terms
Portuguese mortgages offer generous repayment periods—often up to 30 years—making monthly installments more manageable and giving buyers plenty of financial breathing room.
Attractive Mortgage Rates
Local banks generally offer competitive mortgage rate in Portugal compared to many other countries. This makes financing a property more affordable, especially for long-term planning.
Accessible to Foreign Buyers
You don’t need to be a resident to get a mortgage in Portugal. Banks are very comfortable lending to international clients, which makes buying in Portugal much more accessible than in many other markets.
Strong Investment Opportunity
Financing a property can enhance your return on investment. You can rent out the property freely—there are no restrictions on renting homes purchased with a mortgage in Portugal—allowing you to generate rental income while the property appreciates over time.
Types of Mortgages Rates in Portugal
When financing property, buyers can choose between different mortgage rate in Portugal, each suited to a specific risk profile and investment strategy. Understanding Portugal mortgage rates and how fixed, variable, and mixed rates work helps you choose a Portuguese mortgage that aligns with your cash flow needs, long-term plans, and tolerance for interest rate fluctuations.
Fixed-Rate Mortgage
This option keeps your mortgage rate Portugal unchanged for the entire fixed period, which means your monthly payment stays exactly the same. It’s ideal if you prefer predictability and want to safeguard your budget from future rate increases. Many buyers choose this option of mortgage rate Portugal for peace of mind, even if the initial rate is slightly higher.
Variable-Rate Mortgage
With this option, your mortgage rate in Portugal moves with the Euribor, plus the bank’s margin. Your monthly payment can rise or fall over time, depending on the market. It’s attractive if you’re comfortable with fluctuations and want the possibility of benefiting from lower rates when the Euribor drops.
Interest-Only Mortgage
Interest-only mortgage rate in Portugal is less common, but still possible in certain investment scenarios. For a set period, you pay only the interest, keeping monthly costs low at the start. It can be useful for investors who want to preserve cash flow, but keep in mind that the full principal will still need to be repaid later.
Step-by-Step Process of Getting a Mortgage in Portugal
1. Research Banks
To obtain your mortgage in Portugal start by exploring lenders that work with foreign buyers. You can check online, speak with real estate agents, or consult a mortgage broker to compare options and find the best fit.
2. Gather Required Documentation
Prepare your documents early—typically a passport, proof of income, recent bank statements, and a credit report. Having everything ready helps speed up the process of getting your mortgage in Portugal.
3. Submit the Application
Once you’ve chosen a lender, submit your Portuguese mortgage application along with all the supporting documents. The bank will review your financial profile and run their initial checks.
4. Obtain a Mortgage Offer
If your Portuguese mortgage application is approved, the bank issues a formal mortgage offer outlining the loan amount, interest rate, repayment terms, and any additional conditions.
5. Property Valuation
Before final approval, the bank will order a valuation to confirm the property’s market value and ensure it aligns with the amount being financed.
6. Finalize the Purchase
After the valuation and final checks, your mortgage in Portugal is issued. You can then move forward with signing the deed and completing the property purchase.
Documents Required to Get a Mortgage in Portugal
When applying for a mortgage in Portugal, if you are married, the bank will request documentation from both applicants. Non-residents will typically need to provide the following documents to support their Portuguese mortgage application:
- Passport
- Portuguese Tax Number (NIF)
- Address Proof or residency
- Credit report
- Last 3 pay slips
- Recent bank statements
- Most recent tax returns
- Property documents
Get In Touch With Us
Portugal Residency Advisors® has helped hundreds of international families and investors secure residency, citizenship, and investments in Portugal. Discover how our trusted approach makes your move simple and successful.
Costs and Fees for Mortgages in Portugal
Buying a property in Portugal comes with several upfront costs that buyers should plan for, both on the purchase side and the Portuguese mortgage side. To give you a clear picture, here’s a simple breakdown of the typical taxes, fees, and mortgage expenses for a €500,000 property.
Best Mortgages Banks for Foreigners
The best mortgages in Portugal for non-residents can vary depending on individual financial circumstances, preferences, and eligibility criteria. Here are a few that are often considered:
- Novobanco
- Banco Santander Totta
- Millennium BCP
- UCI
- Caixa Geral de Depósitos
Working With a Mortgage Broker in Portugal
Navigating the Portuguese mortgage market can feel complex—especially for foreign buyers. Working with an experienced mortgage broker helps simplify the process, giving you access to better mortgage rate in Portugal options, clearer guidance, and a smoother path from application to approval.
Here is a summary of what a Portuguese mortgage broker can do for you:
Access to More Mortgage Options
A broker can open the door to a wider range of lenders and mortgages in Portugal options, including some that aren’t easily accessible to the general public. This makes it easier to find a mortgage tailored to your financial profile and goals.
Expert Advice
They guide you through each step—from understanding different types of mortgages in Portugal to comparing rates and terms—so you can make confident decisions without feeling overwhelmed.
Saves You Time
Instead of contacting multiple banks yourself, the broker handles the research and negotiations of your mortgage in Portuguese. This lets you focus on other priorities while they do the heavy lifting.
Specialized in Foreign Buyers
Brokers who regularly work with international clients understand the paperwork, requirements, and challenges foreigners face when buying a property and applying for a mortgage in Portugal, making the process much smoother.
No Extra Cost to You
Most brokers are paid by the lenders, not by the borrower. With their negotiating power, they can often secure better mortgage rate Portugal and conditions than you would get on your own—without adding any extra fees to your purchase.
For more videos about investing or moving to Portugal, explore our YouTube channel here: YouTube Channel Portugal Residency Advisors.
Portuguese Mortgage Glossary
TAEG: This is the Portuguese equivalent of the APR. It includes the interest rate plus all mandatory costs, giving you the true total cost of the mortgage in Portuguese.
Euribor: A benchmark interest rate used across Europe. Most mortgages for Portugal with a variable-rate are based on the Euribor plus the bank’s margin.
Spread: This is the bank’s fixed margin added on top of the Euribor. Your final rate of Portuguese mortgage = Euribor + Spread.
LTV (Loan-to-Value): The percentage of the property price the bank is willing to finance. For foreigners, it’s usually around 70%.
Tenor: refers to the total length of the loan — the number of years you have to repay it.
Why Work With Us
At Portugal Residency Advisors®, we collaborate with carefully chosen premium mortgage brokers in the market.
We streamline the entire process of applying for a mortgage, handling all the paperwork from obtaining your NIF number to opening your bank account, and liaising with our mortgage partners on your behalf.
Working with us can save you time, effort, and even money in the long run.We’ll help you avoid common mistakes and pitfalls that many expats or first-time home buyers encounter, and provide peace of mind throughout the entire process.
So if you’re ready to find your dream home, consider partnering with us to make the process smooth and stress-free.
Frequently Asked Questions
Can foreigners get a mortgage in Portugal?
Yes. Foreigners, including non-residents, can apply for mortgages in Portugal, though requirements may differ from Portuguese citizens.
How much deposit do foreigners need for a mortgage in Portugal?
Most lenders require a deposit of at least 20% from foreigners, meaning the loan-to-value (LTV) is usually capped at around 80%.
What documents are required for a mortgage in Portugal?
Typically: passport, Portuguese NIF, proof of address, credit report, pay slips, bank statements, tax returns, and property details.
What are the typical mortgage rates in Portugal?
Rates vary by lender and type of mortgage. In 2025, new contracts average around 2.8%–3.3%, with fixed, variable, and mixed-rate options available.
How long can a mortgage term be in Portugal?
Mortgage terms can extend up to 40 years, although shorter terms are common. Longer terms reduce monthly payments but increase total interest paid.
Can non-residents apply for a Portuguese mortgage?
Yes, but non-residents may face stricter conditions, such as higher deposits and slightly higher interest rates.
Do I need a Portuguese bank account to get a mortgage?
Yes. A local bank account and Portuguese tax number (NIF) are required to process a mortgage.
Should I use a mortgage broker in Portugal?
Yes. Brokers can help foreigners access more lenders, secure better rates, save time, and navigate the process with expert guidance.
How long does it take to get a mortgage in Portugal?
The process usually takes 4–8 weeks, depending on the lender, documentation, and property valuation.
Can buying property with a mortgage in Portugal help me get residency?
Not directly. Property no longer qualifies for the Golden Visa, but you may still apply for visas such as the D7 or D2.
Can US citizens get a mortgage in Portugal?
Yes. US citizens can get a mortgage in Portugal as non-residents. Portuguese banks typically finance up to 60–70% of the property value, depending on the client profile, income, and the property itself.
Can you get a 40-year mortgage in Portugal?
Yes, 40-year mortgage terms are possible, but they are becoming less common. Most banks now cap new mortgages at 30–35 years, especially for non-residents.
What is the maximum age for a mortgage in Portugal?
In most cases, the mortgage must end when the borrower is between 70 and 75 years old, depending on the bank. This means the borrower’s age directly affects the maximum loan term available.
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