Mortgage credit simulator

A mortgage loan is bank financing intended for the purchase, construction or renovation of a home. The amount borrowed is repaid in monthly instalments over a term defined in the agreement, which in Portugal can be up to 40 years (although Banco de Portugal recommends a maximum of 30 years for new agreements).

In Portugal, banks normally finance up to 90% of the property value for permanent owner-occupied housing (and up to 80% for second homes or non-residents). This means that for a EUR200,000 house, you will need to have at least EUR20,000 available as a deposit. In addition, you should allow a further 8% to 10% of the property value to cover taxes and associated costs (IMT, Stamp Duty, deed and registrations), that is, between EUR16,000 and EUR20,000 additional. In total, for a EUR200,000 house, you should have approximately EUR36,000 to EUR40,000 available.

Banks in Portugal analyse the debt-to-income ratio - monthly credit commitments should not exceed 35% to 40% of the household's net income. For example, for a monthly instalment of EUR700, the household income should be at least EUR1,750 to EUR2,000 net. Maxfinance carries out a free analysis of your profile to understand exactly how much you may be able to finance.

In Portugal, the mortgage loan approval process usually takes between 3 and 8 weeks. This period includes the analysis of the financial profile, the bank's property valuation and formal approval. With Maxfinance's support, the process becomes more efficient, as we handle the documentation and submit the request to several banks at the same time.

Yes, it is possible to apply for a mortgage loan with a fixed-term employment contract, but banks analyse professional stability more carefully. In general, a minimum of 1 to 2 years of employment relationship or a history of contract renewals is requested. Maxfinance assesses your profile and identifies which banks are more receptive to your specific situation.

To get the best interest rate, it is important to compare proposals from several banks, present a good financial profile (low debt-to-income ratio, stable employment and a higher deposit) and negotiate the spread. Maxfinance submits the application to multiple financial institutions at the same time, which significantly increases the likelihood of obtaining the most competitive proposal for your case.

The legal maximum term in Portugal is 40 years. However, since 2022 Banco de Portugal has recommended that the term should not exceed 30 years for new agreements, especially for customers over 30 years old. The longer the term, the lower the monthly instalment, but the higher the total cost of the loan in interest paid to the bank.

With a variable rate, the instalment is indexed to Euribor (usually 3, 6 or 12 months) - it may fall when Euribor falls, but it also rises when Euribor rises. With a fixed rate, the instalment remains the same during the agreed period, offering full predictability. A mixed rate combines the two: fixed for an initial period (for example, 5 or 10 years) and then variable. Maxfinance helps you understand which system is most suitable for your profile and for the expected evolution of rates.

The spread is the profit margin applied by the bank to the mortgage loan, added to the reference rate (Euribor). It is one of the main factors determining the monthly instalment amount. The lower the negotiated spread, the lower the instalment. Maxfinance helps negotiate the best spread conditions with partner banks.

APRC (Annual Percentage Rate of Charge) represents the total cost of credit for the customer, including interest, fees, insurance and all other charges associated with the loan. It is the most complete indicator for comparing proposals from different banks, as it includes all costs and not just the interest rate.

The bank valuation is carried out by an accredited expert appointed by the bank, who determines the official value of the property for credit purposes. The bank finances a percentage of this value (called LTV - Loan to Value). If the valuation is lower than the agreed purchase price, the financed amount may be lower, requiring a larger deposit from the buyer. It is a mandatory step in any mortgage loan process in Portugal.

As a rule, banks do not finance deed expenses (IMT, Stamp Duty, notary fees and registrations). These expenses must be paid by the buyer and can represent between 6% and 10% of the property value. That is why it is important to have a financial cushion beyond the minimum deposit required. Maxfinance helps calculate the total amount needed before moving forward with the process.

Yes, in most cases. The need for a guarantor depends on the customer's financial profile, namely the debt-to-income ratio, income and banking history. Customers with a solid financial profile rarely need a guarantor. Maxfinance analyses your case and advises on the best approach with the banks.

Yes. The bank assesses factors such as income, professional stability, debt-to-income ratio, credit history and situation with Banco de Portugal before approving the financing. A refusal by one bank does not mean that others will also refuse - this is why comparing proposals from different institutions through Maxfinance increases the chances of approval.

The monthly instalment depends on several factors: total amount financed, loan term, interest rate (Euribor + spread), type of rate (fixed or variable) and insurance associated with the credit (life and multi-risk insurance). Maxfinance helps simulate different scenarios to find the instalment best suited to your budget.

Early repayment means paying part or all of the loan before the agreed term. In Portugal, banks may charge an early repayment fee of 0.5% on the amount repaid for variable-rate loans, or 2% for fixed-rate loans. Repayment reduces the outstanding capital and allows you to reduce the monthly instalment or shorten the loan term. Maxfinance helps you understand which option is most advantageous for your case.

Yes. It is possible to renegotiate conditions such as the spread, the term, the rate regime or the insurance associated with the loan. This renegotiation can be done directly with the current bank or through a loan transfer to another institution with better conditions. Maxfinance analyses the available options and supports the renegotiation or transfer process.

In case of difficulties paying the instalment, there are several alternatives before reaching foreclosure: renegotiating with the bank (term, rate or grace period), using PARI (Action Plan for Risk of Default) or PERSI (Out-of-Court Procedure for the Regularisation of Default Situations). The most important thing is to contact the bank immediately and not allow missed instalments to accumulate. Maxfinance can help analyse renegotiation or loan transfer options.

Yes, it is possible to obtain a mortgage loan in Portugal as a non-resident, but the conditions are generally more restrictive. Banks usually finance up to 70% to 80% of the property value (instead of 90% for residents) and require additional documentation on income abroad. Maxfinance has experience with processes for emigrants and non-residents and can guide you on the banks most receptive to this profile.

The documents usually requested are: identification document (Citizen Card or Passport), tax number, proof of income (last 3 salary slips or IRS income tax return), IRS tax assessment note, bank statements from the last 3 to 6 months, IRS income tax return, and property documentation (urban property tax registration document and land registry certificate). The exact documentation may vary depending on the bank and the customer's specific situation.