For those who dream of having a vacation home in Portugal some banking insitutions offer an excellent financing conditions ( TAE 2.660 % as for march 2016)
Update :as for beginning of augast 2016 we are able to arrange a mortgage for Non -Residents at TAE 1.95 % .
We highlight the maximum period of 30 years and the possibility of financing up to 70 % of assessed value , according to the Variable Rate and secondary housing.
Portuguese banks assess eligibility on the applicant's capacity to repay the mortgage, as well as recent credit history. As a guideline, your debt to income ratio should not exceed 35% of your gross monthly income; however there may be a degree of flexibility in this for certain types of applicant.
Documentation you will be required to provide:
Proof of identity (passports, driving licence, or other suitable photo ID.)
Proof of residence (utility bill, bank statement etc. dated within the last 3 months
Proof of income (latest payslip, tax return, copy of accounts etc.)
Proof of existing mortgage or rent payments (usually covering the last 12 months)
Proof of deposit (last 60 days bank statements showing source of funds)
Bank statements (usually last 60 days to show salary credits and outgoings)
Property details ( or sales contract)
Documents will need to be either original or certified copies. Items such as passports and driving licences will need to be in date at the time the mortgage is due to complete or close
Taxes - you will have to apply for a fiscal number, (numero fiscal de contribuente), the equivalent of a national insurance number, from the local tax office.
Once all conditions as set out in the original contract have been met, the final deed is drawn up and signed by both parties at a public notary office (the notario). You must pay a transfer tax called IMT (imposto municipal sobre transmissões onerosas) before the purchase goes ahead.
The notario will witness the signing of the final deed and the “escritura” is registered at (Conservatória do Registo Predial, the local land registry office, and at the local tax office (Repartição de Finanças).
Legal Fees :
Bank’s arrangement fee: Typically 0.50 %-1.0% of the loan amount
Valuation fee – will vary depending upon the purchase price of the property
legal fees – approx 1% to 2%
When a mortgage is registered over the property, mortgage stamp duty, notarial fees and land registration fees will be payable
Contact us for application form and competitive quotation !