Portuguese mortgage financing continues to attract international buyers. However, non-resident clients are often influenced by widespread misconceptions.
Below, we clarify the most common MYTHS and FACTS regarding property mortgages in Portugal, allowing you to make informed and confident decisions.
IT IS ALWAYS BEST TO APPLY DIRECTLY WITH A BANK
MYTH:
Each Portuguese bank applies different credit policies, risk models and pricing strategies. Approaching a single bank can significantly limit access to competitive and tailored solutions.
This preparation allows you to view properties with confidence and make decisions promptly when the right opportunity arises.
SUBLIME MORTGAGE INSIGHT:
As independent mortgage broker, we assess multiple banks simultaneously and negotiate conditions aligned with your profile — not generic retail offers.
30% DOWN PAYMENT IS ALWAYS MANDATORY
30% DOWN PAYMENT IS ALWAYS MANDATORY
MYTH:
It is often believed that buyers must always provide a 30% down payment. In reality, most Portuguese banks typically finance up to 70% of the property value for non-residents. This is the standard expectation, but it is not necessarily a fixed rule.
FACT:
With a carefully prepared application, higher financing options become available. Banks may offer up to 80% or more of the property value, particularly when additional guarantees are provided (e.g., other properties in Portugal). These opportunities are rarely obvious to individual applicants without expert guidance.
SUBLIME MORTGAGE INSIGHT:
A strategic, well-prepared approach can unlock flexible financing solutions tailored to your unique profile, ensuring the smoothest path to property acquisition.
VARIABLE INTEREST RATES ARE ALWAYS TOO RISKY
MYTH:
Variable-rate mortgages are linked to Euribor movements; however, they also provide GREATER FLEXIBILITY and, in Portugal, a SIGNIFICANTLY LOWER EARLY REPAYMENT FEE when compared to fixed-rate loans.
FACT:
Under Portuguese regulation:
- Variable-rate mortgages: early repayment fee of up to 0.5% of the repaid capital;
- Fixed-rate mortgages: early repayment fee of up to 2.0% during the fixed-rate period This makes variable-rate solutions.
Particularly attractive for clients who:
- Anticipate early repayment;
- Plan to sell or refinance in the medium term;
- Value liquidity and portfolio flexibility.
SUBLIME MORTGAGE INSIGHT:
For international clients and investors, the lower early repayment cost associated with variable rates can represent substantial savings and greater strategic flexibility.
EXISTING LOANS MAY HINDER MORTGAGE
MYTH:
Portuguese banks assess overall affordability rather than the existence of other liabilities.
FACT:
The key determinant is the global debt-to-income ratio and the borrower’s financial discipline.
SUBLIME MORTGAGE INSIGHT:
In many cases, restructuring existing obligations improves approval probability and pricing conditions.
IT IS VERY DIFFICULT FOR NON-RESIDENTS TO OBTAIN A MORTGAGE IN PORTUGAL
MYTH:
Portugal remains one of Europe’s most accessible mortgage markets for international buyers when applications are correctly structured.
FACT:
Non-resident mortgages are routinely approved across multiple Portuguese banks
SUBLIME MORTGAGE INSIGHT:
We specialise in non-resident and expatriate profiles, ensuring income, documentation and risk presentation meet Portuguese banking standards.
FINAL CONSIDERATION
Accurate information is essential when acquiring property abroad. Understanding both MYTHS and FACTS is the first step towards securing a mortgage solution that is competitive, flexible and aligned with your long-term objectives.
SUBLIME MORTGAGE INSIGHT:
Before committing to a lender, consult specialists who understand international financial profiles and the Portuguese banking system. A well-structured mortgage can generate substantial long-term value.
SUBLIME MORTGAGE
Sublime Mortgage
is a specialist advisory service offering a boutique, personalised approach.
We provide expert, discreet guidance and work closely with leading Portuguese banks to secure competitive mortgage solutions tailored to your needs.
We would be pleased to discuss your requirements.
Contact us at +351 917 773 279 Email:info@sublimemortgage.com
