Mortgage for construction
Move ahead with building your home
Personalized analysisWe obtain simulations from the banks we work with and review each one’s conditions with you.
Ongoing supportWe’re by your side throughout the entire process. From the start of the financing, through the deed, all the way to the completion of the construction.
No-cost intermediationOur intermediation service has no cost for you; we are paid by the banks, as required by law.
Financing for construction
Ideal if you already own a plot, allowing you to move forward with project approval at your own pace
Financing for land purchase + construction
The solution if you want to buy land and build your home
Release of funds in tranches
As the construction progresses, the bank releases the financed amount to you- 1st tranche — Depending on the bank, it may be released to start construction; in most cases, the land must already be yours.
- Subsequent tranches — Release of the financed amount according to the percentage of work completed and after verification by an appraisal expert.
- Final tranche — The remaining amount is released when the construction is completed and the property has an occupancy permit.
Before you start thinking about building, start here
01Try a simulation
Start by running a simulation in CrediSegur’s Mortgage simulator to see the conditions offered by the institutions we have binding agreements with. This way, you can analyze the figures that really matter, such as TAEG and MTIC, and understand how much each euro you borrow actually costs.02Gather the documentation
- Personal documents
- Tax Property Register (Caderneta Predial) from the Tax Authority
- Land Registry Certificate from the Land Registry Office
- Signed construction budget
- Architectural/project plans showing municipal approval
- Construction permit or municipal approval notice
- Proof of payment of fees
03Talk to a CrediSegur manager
With the support of a specialized CrediSegur manager, taking out a construction loan becomes much simpler. We guide you through every stage, from approval and signing of the deed to the release of the tranches by the bank, helping you gather what the bank requires at each work progress report, right up to completion of the construction and issuance of the occupancy permit.Talk to us and take the first step today towards building the home of your dreams.
Illustrative exampleMortgage — construction
Miguel and Patrícia bought the land and are going to build their home
In this example, they financed the purchase of the land and the construction with a single creditMiguel and Patrícia are fictional characters created for illustrative purposes — they do not correspond to a real case.
Simulation (example)€927.40Monthly payment
Total amount financed €225,000.00
Term 35 years
TAEG 4.22%
What changes between the two options: with land acquisition, the credit finances both the land and the construction; without land acquisition (when you already own the land), it only finances the construction — which usually results in a lower financed amount. To see the other option, choose “With land acquisition” or “Without land acquisition”.
Simulation (example)The monthly payment refers to the fixed-rate period (5 years). After that, the rate becomes 6‑month Euribor + spread — assumption: 6‑month Euribor of 2.922%, average of September 2026 — and the monthly payment is recalculated. 420 monthly payments. Credit secured by mortgage. The TAEG includes the insurance required to obtain the Mortgage under these conditions. TAEG and MTIC reflect the entire term.
Land value
€60,000.00
Estimated construction cost
€190,000.00
Own funds (10% of the land and construction cost)
€25,000.00
Total amount financed
€225,000.00
Term
35 years
TAN — Mixed Rate (fixed for 5 years)
2.90%
Spread (after fixed-rate period)
0.90%
Euribor
6 months
Insurance (Life + Multi-risk*)
€74.00Annual: €888.00
*Multi-risk applicable after completion of the construction; during construction, separate construction/civil liability insurance is required.Upfront costs (fees and Stamp Duty)
€1,922.00
Monthly payment
€927.40
Payment after fixed-rate period
€1,031.93
TAEG (example)
4.22%
MTIC (example)
€429,062.84
How the disbursement works: the principal is made available in stages, according to the work measurement reports, and not all at once on the deed date.
Need to transfer, build or something else?
See other Mortgage solutions.- Transfer
Transfer your Mortgage and see if you can get better conditions, taking the costs of the operation into account.Learn more - Mortgage
Need liquidity or want to consolidate debts? Use a property of yours or a family member’s as collateral; longer terms lower the monthly payment but increase the total cost.Learn more - Purchase + Renovation
Buy the property and include the cost of improvement works in the same loan. Handle everything in a single operationLearn more - Transfer and consolidate
Combine your Mortgage and other debts into a single monthly payment; a longer term may increase the total interest paid.Learn more - Land + Construction
A single loan for buying the land and carrying out the construction. Your project is financed from start to finishLearn more
What people say about us
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Union de Créditos Inmobiliários, S.A. – Sucursal em Portugal
COFIDIS
SICAM – Caixa Central e Caixas de Crédito Agrícola Mútuo
Caixa Geral de Depósitos, S.A.
BNP Paribas Personal Finance, S.A. – Sucursal em Portugal
BBVA, Instituição Financeira de Crédito S.A.
Bankinter, S.A. – Sucursal em Portugal
Banco CTT, S.A.
Banco BPI, S.A.
Banco Santander Totta, S.A.
Novo Banco, S.A.
Banco de Negócios Internacional (Europa), S.A.
ABANCA Portugal, S.A.
Land and construction credit is a type of mortgage financing that allows you to buy the land and build the house under a single credit agreement.In practice, the bank finances two stages:• The purchase of the land, which is given as collateral (mortgage)• The construction of the house, whose amount is released in stages, in tranches, as the work progressesWith a single agreement you have just one approval process and one mortgage deed; always compare the APR (TAEG) and the Total Amount Charged to the Consumer (MTIC) with the alternative of taking out two separate loans.At CrediSegur, we help you compare the banks we are tied to that offer this type of financing and negotiate on your behalf, supporting you throughout the entire process until the construction is completed.
In addition to the monthly payments (principal + interest), construction credit involves some additional costs that are important to understand from the outset.The main charges include:• Bank fees, such as the opening fee and property appraisal costs• Mandatory insurance, namely Life Insurance and Multi-risk (Home) Insurance• Stamp Duty of 0.6% on the financed amount and 4% on the fees; the interest on a loan to build your own home is exempt• In some cases, fees associated with technical inspections carried out during the construction, to validate the release of the tranchesTo avoid surprises, it is essential to look at two key indicators:• TAEG (Taxa Anual de Encargos Efetiva Global), which includes all the costs of the credit• MTIC (Montante Total Imputado ao Consumidor), which shows the total amount you will pay in the endAt CrediSegur, we present all conditions in a transparent and comparable way, so you can understand the real cost of the credit before signing any agreement, with no surprises or hidden charges.
After the land has been analyzed and the financing proposal has been chosen, the next step is to sign the Promissory Purchase and Sale Agreement (CPCV).From here, the process can follow two paths, depending on the status of the land:1. If the land is urban and already has a project approved by the City Council, the process is simpler and faster, so it will only be necessary to:• Submit the specialties project (structures, water, electricity, sewage, etc.), which must also obtain a favorable opinion• After approval, submit the builder’s and applicant’s documents for issuance of the construction permit2. If the land is urban but does not yet have an approved project:• Submit the architectural project (basic house design) to the City Council, including all drawings and written elements required for the approval of the work• Once the architectural project is approved, the specialties project will then be submitted, which must also obtain a positive opinion• Only after these two steps can the construction permit be requested
After the construction work is completed, the construction logbook and the remaining technical documents are delivered.With these elements, it is possible to request the occupancy permit (or housing permit) from the City Council, which confirms that the property is legally ready to be inhabited.
Intermediation at no cost