Best places to Apply for mortgage before moving to Portugal

Residencies & citizenships Portugal Golden Visa
1

As we wait for our golden visa application to hit 5 years and potentially 10 years (new law incoming), we are leaning towards moving to portugal because even the worst case scenario (new law with 10 years from first card) seems like the best option we have with current 3rd world passport.

We have been to portugal once for 15 days in november and its decent and we are going to buy a house as soon as move (i know i know), i really don’t want advice on how you should spend a winter before you commit to place or whatever, just need help figuring out how to go about mortgage.

Is it possible to start talking to banks now before moving to portugal (expecting to move in next 30 days) and get pre approval done?

Do we work directly with banks or are brokers decent as well? Who pays the brokers? if banks do, aren’t they charging us higher interest?

Are there other general tips when it comes to buying a house that someone might fall into because they are specific to portugal.

We are looking at properties between 500k to 1 mil in suburbs of lisbon, think Sintra for example

2

I think the real estate agents know all of these. They want to sell houses. If you show them your serious interest in buying a property in portugal, they will walk you thru. It’s just like lawyers of PT GV who often know and have connection with Funds and Banks

3

Can’t answer your mortgage question, sorry. But as you’re considering a house purchase in Portugal…

Portugal residential real-estate can be a bit “wild west.” I’m not sure if there’s any accreditation required, and our Agent (in Madeira) has told us of various dirty tricks like stealing each other’s clients, Agents not crediting other Agents who introduced buyers to them, etc. If you’re familiar with the relative transparency and orderliness of the MLS® or the National Association of REALTORS® in Canada/US, Portugal doesn’t have that. So beware!

There’s been a few other relevant threads on NG - careful as some of the posts are obviously Agents masquerading as helpful souls…

It’s also worthwhile noting that currently…

4

I understand that some of the experiences shared by members of NG may seem a bit unusual, and I’d like to clarify a few of the points that were discussed. Having purchased more than five properties across Portugal—and having first‑hand experience with real estate processes in the United States, Canada, and parts of Asia—I’ve seen just how different these systems can be.

If we try to apply North American standards directly to Portugal, the market can initially appear somewhat “wild west,” but that impression doesn’t reflect reality. As in any country, there are good and bad realtors. However, unlike in the U.S., where it’s very easy to buy a fixer‑upper with serious hidden structural issues, Portugal generally performs better, especially when it comes to heritage buildings, newer constructions, and renovated properties.

The key is to choose carefully and rely on a proper technical inspection—not a typical U.S.-style home inspection company, but a qualified architect and engineer who can evaluate the building thoroughly. That approach provides a far more complete and reliable assessment of the property’s condition.

Regarding financing, foreigners can obtain up to 70% mortgage financing from Portuguese banks, even without local income. There is no formal pre‑approval process. Banks are generally straightforward, and a reputable realtor can guide you through the entire process, including coordination with the underwriter. As a buyer, you do not pay any commission when purchasing property in Portugal.

As for location, Lisbon and its surrounding areas are currently overheated and offer limited value for money. The North, on the other hand, has significant undersupply and offers excellent opportunities. High‑quality homes can be found in regions such as Aveiro, Porto, Braga, and Viana, among others.

Here is a link for your reference, and wishing you all the best in your search.

5

Just completed a purchase myself in December. My realtor put me in touch with a mortgage broker and we got pre-approved (we provided a ballpark of the amount we wished to finance) before we settled on the home. The process was pretty smooth getting it all done beforehand. They of course will ask for the typical documents: pay stubs, bank account statements, copy of passport, copy of NIF, etc.

Note that anyone can call themselves a “realtor” and there is no certification process. However, to be a real estate “broker” you do need to be licensed. Definitely look for an international brand of broker and you will be fine.

The mortgage broker we worked with presented 3-4 different options with different banks. They come in a EU-mandated format laying out the fees and costs (I was impressed actually- very easy to read). I am older (65) and mortgages will typically only be granted until you turn 70-75 and many will require sufficient life insurance to pay off the mortgage (which is quite expensive). I ended up going with a Novo Banco mortgage that goes until I am 80 and no life insurance. The bank paid the mortgage broker. Compared to the US, the rates are quite low.

Note that there are some large transfer taxes you pay (7.5%-8% depending on price of home and whether or not it’s primary or secondary) and “stamp” taxes for the mortgage and miscellaneous other fees. The mortgage company can provide a breakdown.

My suggestion would be to find your realtor/broker that you will use and be referred to their mortgage broker since the realtor will help get stuff done. Good luck!

6

More about that here, and the new IMT for non-resident buyers (although I think you plan to be resident)…

7

i do plan to be a resident but my mortgage broker i found online tells me for the 1st 6 months that i am in portugal, i am not a tax resident since i do not have 183 days in portugal to be considered as tax resident so lenders still look at you as non resident, even though you have physically moved. What means is slightly lower LTV and higher DTI ratio required.

9

We got a mortgage in Portugal as part of buying our home south of Lisbon last summer—a few months after becoming residents.

We worked with a buyer’s agent, a lawyer, a mortgage broker and a technical inspector.

Out of these I can wholeheartedly recommend the mortgage broker we used. They were really terrific and helped out with much more throughout the process than anyone else.

(We primarily worked with José.)

The technical inspector, Tom, was also good. His company is called TJ Propery Inspections. They’re easy to find on Google.

This was not an issue in our experience. And according to the law you’re tax resident from the first night you spend in Portugal with the intention of becoming a full-time resident.

There’s also no hard rule for how much they’ll finance for foreigners, especially as long as you’re resident in Portugal. We financed 80%, and there were banks offering more than this, too.

True, but then you’d need to deal with the weather of northern Portugal :sweat_smile:

1 Like