Mortgages in Portugal for Americans and Canadians: Your Questions Answered
Atualizado: 31 de out.
By Dra. Sandra Gomes Pinto, Founding Partner, SGP – Sandra Gomes Pinto & Associados, Lisbon · Published 25 May 2024
In short: Americans and Canadians can get a mortgage to buy property in Portugal. Non-residents need a down payment of at least 20% for a primary residence and 25% for an investment property, the maximum loan term is 30 years for borrowers under 75, and banks ask for a standard set of income, asset and credit documents. These answers come from an SGP webinar on mortgages and loans for American and Canadian clients, recorded in 2024, so interest rates may have changed since.
Mortgages in Portugal at a glance
Topic | Key point |
Minimum down payment, non-residents (primary residence) | 20% |
Minimum down payment, non-residents (investment property) | 25% |
Maximum loan term | 30 years, for borrowers under 75 |
Fixed interest rates (April 2024) | 3% to 3.5%, depending on the loan term |
Spread | Negotiable; depends on creditworthiness and the loan product |
Life insurance | Can be avoided with a down payment of at least 50% |
Borrowers over 70 | Possible but harder: shorter term, younger co-signer or usufruct |
Why finance a property in Portugal
Why would an American or Canadian buyer take a mortgage in Portugal instead of paying cash?
A mortgage lets you keep your savings invested, where they may earn a higher return than the interest rate on the mortgage. You may also avoid capital gains taxes by not selling your investments to buy the property outright.
Documents and down payment
What documents do I need to get a mortgage in Portugal?
Portuguese banks ask for proof of identity, income, assets and credit history:
passport;
Portuguese tax number (NIF);
employer letter stating your current salary, type of employment, job title and time with the company;
payslips for the last three months;
bank statements for the last three months for your main account, savings accounts and other financial products;
investment documents (for example, 401(k) or RRSP);
last income tax return (federal and state or provincial, if applicable);
detailed credit report.
Can a property in Portugal be 100% financed with a mortgage?
No. Non-residents need a minimum down payment of 20% for a primary residence and 25% for an investment property.
Interest rates, loan terms and insurance
What are mortgage interest rates in Portugal?
As of April 2024, fixed mortgage rates in Portugal ranged from 3% to 3.5%, depending on the loan term. Variable rates are typically lower than fixed rates in the short term, but they can fluctuate over time. Rates may have changed since the webinar, so check current offers with your bank.
What is the maximum mortgage term in Portugal?
The maximum loan term is 30 years, for borrowers under the age of 75.
What is the spread on a Portuguese mortgage?
The spread is the difference between the bank’s base rate and the interest rate charged to the borrower. It is negotiable and depends on the borrower’s creditworthiness and the loan product.
Can I avoid life insurance on a mortgage in Portugal?
Yes, if you put down a large enough down payment: at least 50%.
Can I get a mortgage in Portugal if I am over 70?
It may be difficult, but there are options. You may be able to get a shorter loan term or co-sign with someone younger. You could also buy the property in your children’s names and live there as a usufructuary, with the right to use the property for your lifetime.
Watch the full webinar
The complete webinar on mortgages and loans in Portugal for American and Canadian clients is available on YouTube: watch the full webinar.
About the author
Dra. Sandra Gomes Pinto is the Founding Partner of SGP – Sandra Gomes Pinto & Associados, a Lisbon law firm advising international clients on Portuguese immigration and citizenship, property transactions, tax, and wills and estate planning. SGP was a pioneer in helping Americans move to Portugal and has assisted more than 500 Americans and other international clients with their relocation.
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📩 Planning to buy and finance a property in Portugal? Contact SGP at sgp@sandragomespinto.com or visit sandragomespinto.com.
This article summarises a webinar recorded in 2024. Interest rates and bank criteria change frequently. It is not financial or legal advice for your specific situation.
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