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Fill in the necessary data and click "Simulate" to calculate the monthly payment, available financing, and costs associated with the purchase.A mortgage is a loan granted by a credit institution to finance the purchase, construction, or renovation of a property intended for primary residence, secondary residence, or rental.It can also be used for the purchase of land for construction, for the transfer of an existing mortgage to another institution, or to finance the down payment on a future property purchase.Generally, the loan is secured by a mortgage on the financed property.
The installment is the amount you pay monthly to the bank for the loan.It usually consists of the repayment of the principal and the interest on the loan, and may also include, when contracted through the bank, the premiums of the associated insurance policies.
The installment amount depends on several factors: the amount financed, the remaining principal, the loan term, the interest rate (spread and index, when applicable), the type of rate (fixed, variable, or mixed), and any early repayments.
With a variable rate, the interest rate follows the evolution of the Euribor. Whenever the Euribor is reviewed (usually every 3, 6, or 12 months), the installment may increase or decrease.With a fixed rate, the interest rate remains unchanged throughout the contracted period, providing stability in the installment. Generally, the initial installment is higher than with a variable rate.A mixed rate combines both types. During an initial period (usually 2, 5, 10, or more years), a fixed rate is applied, and after this period, the loan switches to a variable rate indexed to the Euribor.The choice depends on the risk profile, expectations about interest rate trends, and the predictability desired for the family budget.
The Euribor is the most commonly used index in variable-rate mortgages in Portugal.When the Euribor rises, the installment tends to increase. When it falls, the installment tends to decrease.Those who choose a variable rate should be prepared for these fluctuations throughout the life of the loan.
Generally, banks finance up to 90% of the lower value between the purchase price and the appraisal value for a primary residence.For a second home or investment properties, the financing limit is usually lower, varying from institution to institution.Until December 31, 2026, the public guarantee scheme for young people is in effect, allowing eligible clients to obtain financing up to 100% of the purchase price, provided all legal requirements and the credit institution's approval criteria are met.
In most situations, buyers need their own capital, as banks typically finance up to 90% of the property's value.However, until December 31, 2026, young people who meet the public guarantee requirements can benefit from financing up to 100% of the purchase price.It is important to remember that there are still expenses that are usually not financed, such as appraisal, deed, registrations, taxes (when applicable), and other charges associated with the process.
The longer the loan term, the lower the monthly installment, but the higher the total amount of interest paid over the life of the contract.On the other hand, a shorter term implies a higher installment but significantly reduces the total cost of the mortgage.
Although often confused, they are different concepts.The effort rate corresponds to the percentage of net monthly income allocated to the payment of loan installments under current conditions.DSTI (Debt Service-to-Income) is the indicator used by banks to assess a client's borrowing capacity. Unlike the effort rate, it also considers a stress scenario, simulating an increase in interest rates on loans subject to this risk and applying the assumptions defined by the macroprudential recommendations of Banco de Portugal.Thus, a household may have a current effort rate of 38%, but a higher DSTI due to the impact of this simulation.From August 1, 2026, the macroprudential recommendation of Banco de Portugal establishes, as a general rule, a maximum DSTI of 45%, without prejudice to the exceptions provided in the applicable regulations.
Before taking out a mortgage, you should assess your current and future financial capacity, the effort rate and DSTI, income stability, the existence of other loans, and the possibility of interest rate increases.You should also compare different offers by analyzing the TAN, TAEG, MTIC, spread, type of rate, insurance, commissions, and other charges.The decision should not be based solely on the monthly installment but on the overall cost of the financing.
The most commonly requested documents are the Citizen Card, the latest pay slips, the IRS declaration and respective settlement note, the credit responsibilities map from Banco de Portugal, bank statements (when requested), and proof of other income, if any.The more complete the information, the more accurate the simulation will be.
The law does not require opening an account or taking out insurance with the institution granting the loan.However, it is common practice for banks to condition certain commercial conditions, such as lower spreads, on salary domiciliation or the contracting of certain products.Whenever life insurance or multi-risk insurance is required, the client generally has the freedom to choose the insurer, provided the policy meets the institution's requirements.
Yes. Approval depends on the analysis carried out by the financial institution.Among the most relevant factors are available income, professional stability, effort rate, DSTI, credit history, the responsibilities map from Banco de Portugal, and the property's appraisal value.
The cheapest mortgage is not always the one with the lowest spread.When comparing offers, you should analyze the spread, TAN, TAEG, MTIC, type of rate, insurance, commissions, and flexibility for early repayments or future transfers.A comprehensive analysis allows you to identify the most advantageous solution for each situation.
Yes. You can repay the loan in full or in part at any time, respecting the notice periods provided by law and the contract.Early repayment fees are legally limited, and there may be transitional regimes defined by the Government that temporarily alter these limits.Repayment allows you to reduce the outstanding principal and, consequently, decrease the monthly installment or, alternatively, shorten the loan term, subject to agreement with the institution.
Yes. You can transfer the mortgage to another institution at any time during the contract's term.The new institution usually handles most of the administrative process, and the transfer can allow you to reduce the installment, obtain a more competitive spread, improve associated insurance, or decrease the total cost of the financing.Transfer fees are subject to the legal limits in force, and there may be transitional regimes that temporarily alter these values.
Yes. The calculator allows you to estimate the monthly installment based on the loan amount, term, rate type, and interest rate.It is an indicative simulation. The final installment will always depend on the conditions approved by the financial institution, the property's appraisal, and the client's profile.