Are You Dreaming of Owning a Home in Portugal?
With the right preparation, you can significantly enhance your eligibility for a Portuguese mortgage.
Here are several essential tips to increase your chances of approval
BUILD A STRONG CREDIT HISTORY
While Portuguese banks may not assess your credit history directly, a solid credit report is vital. Many banks will request your credit report to evaluate your solvency. Ensure you have a good credit score and a history of on-time payments. Pro tips:
- Check your credit report for errors
- Pay off outstanding debts and keep your credit usage low
DEMONSTRATE CONSISTENT AND VERIFIABLE INCOME
Portuguese lenders require proof of stable income to ensure that you can comfortably manage monthly mortgage payments. Consider submitting:
- Bank statements
- Tax returns from the last two years
- Pay slips
If self-employed, provide comprehensive documentation that showcases financial stability.
SAVE FOR A SIGNIFICANT A DOWN PAYMENT
For non-residents,Portuguese banks typically finance 70% to 80% of the property’s value. This means you’ll need a down payment of 20% to 30% when including taxes and closing costs. A large down payment not only reflects financial stability but also gives you leverage for negotiating better terms and interest rates.
REDUCE YOUR EXISTING DEBTS
Before applying for a mortgage, work on lowering your debt-to-income ratio. Reduce outstanding debts like:
- Credit card balances
- Student loans
- Personal loans
A lower debt burden enhances your appeal to lenders, making you a more attractive candidate for a mortgage.
GET PRE-APPROVAL FOR A MORTGAGE
Although not mandatory, getting a pre-approval demonstrates that you are a serious buyer. Benefits include:
- Clarifying how much you can borrow
- Focusing on properties within your budget
- Boosting your credibility with sellers
CONSULT A MORTGAGE SPECIALIST
Navigating the Portuguese mortgage market can be complicated. Contact Sublime Mortgage, with 20 years of experience in the Portuguese mortgage sector, to assist you:
- Collect necessary paperwork
- Negotiate favorable terms
- Communicate effectively with banks
Our expertise can simplify the process and tailor solutions to your financial profile.
UNDERSTAND LEGAL REQUIREMENTS AND NECESSARY DOCUMENTS
To apply for a mortgage in Portugal, you will need specific documents, including:
- A valid passport
- Portuguese Fiscal Number
- Proof of income and assets
Having these documents organized will expedite your application and improve your eligibility.
Conclusion
Improving your mortgage eligibility in Portugal takes planning and effort, but these steps will position you favourably for approval. By enhancing your financial profile, you move closer to realizing your dream of owning a home in Portugal
If You Have Questions, Please Don’t Hesitate To Contact Me.
Corinne Ferreira – Senior Mortgage Advisor
