What is the maximum mortgage loan in Portugal?
Calculate your maximum funding with a Portuguese bank. You can read here how the amount of financing in Portugal is established and how to calculate it yourself!
In Portugal, it is often unclear exactly how much you are allowed to borrow from a Portuguese bank. Through answering a few crucial questions and try to give you more clarity on this.
What can I borrow from a Portuguese bank?
Unlike in the Netherlands or Belgium, a 100% mortgage is not standard in Portugal. A resident (Portuguese) can get a maximum mortgage of 90% of the purchase price in their home country. For a non-resident (such as Dutch or Belgian), banks will give a maximum mortgage of 80%. However, it is also common for the bank to want to finance only 60 or 70%, based on your purchase profile. So never assume the maximum!
Where is the maximum funding based on?
The Portuguese bank always calculates the mortgage over the lowest value. This is either the purchase price or the property valuation value. Suppose the appraisal value is lower than the purchase price, the Portuguese bank will set the mortgage amount over the appraisal value. As a result, your financing may be lower than calculated beforehand. It is smart to take this into account.
Often, a quick valuation is carried out by the bank before you buy the property. If you take a mortgage through a Portuguese bank, they will engage a recognised valuer. If you want to engage an appraiser yourself, always discuss whether the bank will accept them.
The mortgage amount is determined at the lowest value. This can be the purchase price or the appraised value!
Required own deposit for a Portuguese mortgage
The bank in Portugal gives a maximum financing of 80% of the lowest value of the property. This means there is at least 20% from equity should be financed. This amount should be demonstrable on a savings account statement. If you have surplus value on your home in the Netherlands, for example, it must therefore be in your bank account at the time of your mortgage application.
Tip: Want to use your surplus value for a purchase in Portugal? Then do our Home equity check!
In addition, don't forget the buyer's costs at purchase of a property in Portugal. This varies quite a bit based on characteristics (location, plot size, destination, property type and purchase price). Allow for an average of 6% of the purchase price, up to as much as 10%. If you want to know the amount we recommend taking out of equity; use Pedro's purchase cost calculator!
Note: we often see people using their surplus value from their home in their own country to get the required equity, but you should also bring in savings. Read more about the use of surplus equity value here.
Sample purchase calculation Portugal
| Type | Amount |
| Purchase price | €250.000 |
| Appraisal value | €235.000 |
| Maximum funding (80% over lowest value) | €188.000 |
| Cost of Buyer (on average 6% of the purchase price) | €15.000 |
| Own equity required | €77.000 |
What determines how much you can borrow in Portugal?
Banks in Portugal have a whole regulation of points and rules that determine how much you can or cannot borrow. So check carefully with Pedro to what mortgage requirements you need to meet in Portugal. Consider the following points, among others:
- The purchase price or appraisal value
- The minimum income requirements
- Your spending limit (DTI) per month
- The prevailing interest rate at that time
- Monthly mortgage charges
- Maximum equity you can contribute
- Your buying profile & income bracket
- The location and type of property you buy
In Portugal, it is almost always a tailor-made proposal for the bank towards you. Mortgage rates are also tailored to your profile, this strongly determines what financing is possible for you!
Keep this in mind, and realise that no estate agent can give you a definitive outcome in advance. Fortunately, you can use Pedro's indicative calculation. This will help you make a realistic estimate!
Calculate your maximum mortgage in Portugal
Through HolaPedro, you do a customised calculation via AI to find out your maximum financing. We test you on all possible variables and you will receive a smart mortgage simulation. This way, you will know your mortgage options in Portugal within 20 minutes!
Or rather first ?
How much can I borrow in Portugal?
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Do you have a decent excess value on your house and want to use it to buy abroad, such as Spain or Portugal? We tell you how and whether it is possible!
