Mortgages are commonly available in Portugal for the majority of nationalities, both for buying a house and for other activities which relate to accommodation (e.g. reconstruction).
The minimum loan is around 25 000 Euro and the upper boundary is unlimited. However, the loan may not exceed 80 % of either the expert valuation or the purchase price (if both prices exist then 80 % of the lower amount).
The applicant must document income in all cases. This may consist of income from employment, pension, income from investments, or income from rent. However, the credit institution need not accept all documented income when deciding on the size of the mortgage provided. Mortgages are generally provided for between 5 and 25 years up to the age of 75. The rate of interest on a mortgage generally ranges between 3.25 and 4.5 %.
All mortgages provided also depend on the amounts that the applicant is paying at the time he/she applies for the allocation of a mortgage. Other loan repayments and personal bank loans, payments for maintenance, and the estimated monthly repayments on the new mortgage for the property in Portugal also must be deducted from net income. The sum of these expenditures ought not to exceed 40 % of the net monthly income of the applicant.