EN
PTEN
FRUnderstanding the Different Types of Mortgages in Portugal
Whether you are a resident in Portugal or a foreigner wishing to settle or invest in the country, CAFIMO has financing solutions adapted to your situation.
Find the Ideal Solution
Each real estate project is unique. At CAFIMO, we help you find the type of financing best suited to your needs.
Mortgage
Home loans are intended for the purchase of main and secondary residences. This financing can cover up to 90% of the purchase price, and even 100% in specific cases guaranteed by the Portuguese State.
It is the most common and can be contracted with three types of interest rate: fixed rate, mixed rate or variable rate. Financing is possible as long as the property is in a habitable condition, or on presentation of an additional budget for renovation works.
- ✓ Financing up to 90% of the property value
- ✓ Fixed, mixed or variable rate
- ✓ Property in habitable condition
Investments
If you are looking for an investment, CAFIMO can also help you obtain financing. From financing buildings to properties intended for long-term or seasonal rental, there are suitable solutions for you.
- ✓ Financing up to 80% of the value
- ✓ Profitability potential analysis
- ✓ Conditions for residents and non-residents
Renovation Works
If you want to carry out renovation works on your property or the property you are buying, it is possible to finance the works under the same conditions as a mortgage. To do this, you need to submit an estimate drawn up by a professional.
- ✓ Financing under mortgage conditions
- ✓ Professional estimate required
- ✓ Phased capital release
Construction
Do you have a plot of land or want to buy one to build on? No problem! Our experts will help you through this process too. You'll need to present the bank with a building project approved by the local council.
- ✓ Project approved by local council
- ✓ Typical construction period: 2 years
- ✓ Financing up to 80% of final value
Equity Release (Mortgage Credit)
This type of loan is reserved for homeowners and allows funds to be released by putting the property up as collateral.
- ✓ Maximum LTV of 70-80%
- ✓ Unencumbered property
- ✓ Multiple purposes possible
Credit Transfer / Remortgage
If you already have a loan with a high rate or want to change the type of rate, you can renegotiate it with another bank.
- ✓ Interest rate reduction
- ✓ Maximum penalty of 0.5% (variable rate)
- ✓ Free CAFIMO service
Comparison of Solutions
See the main characteristics of each type of financing
We Work With the Best Banks
What documents are required?
The list provided is not exhaustive, it may vary depending on your situation: – Passport or identity card. – Portuguese Tax Identification Number (NIF). – Last tax return. – Proof of savings. – Bank statements. – Employment contract and pay slips or any document that can justify your professional activity.
What are the deed costs in Portugal?
Notary costs vary between 5% and 10% of the purchase price in Portugal. The mandatory costs of a mortgage are: – IMT (Municipal Property Transfer Tax), calculated based on the purchase price. – IS (Stamp Duty) of 0.8% calculated on the purchase price. – ISUC of 0.6% calculated on the loan amount. – Bank and notary fees varying between €1,500 and €2,000.
How much down payment do I need to buy in Portugal?
Buying in Portugal requires at least a 10% down payment on top of the purchase costs.
I don't speak Portuguese, is that a problem?
Absolutely not, Cafimo's brokers speak French, English, Portuguese, Spanish and Italian.
I live abroad, can I still purchase a property?
Of course, living abroad is not a restriction. Cafimo has financed more than 1000 projects in 5 years, including more than 400 foreigners.
Which is the best bank to buy in Portugal?
Each bank has its own characteristics. We have developed a large number of partnerships with Portuguese banks: Crédito Agrícola, Novo Banco, CGD – Caixa Geral de Depósitos, Banco BPI, Bankinter, Eurobic, Santander, BancoCTT, Abanca, UCI.
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