When considering getting a mortgage in Portugal, you may think about approaching banks directly. However, working with an overseas mortgage broker in Portugal offers numerous benefits, especially for foreigners. Here are some reasons why working with a mortgage broker can be advantageous.

Mortgage in Portugal Overview

The mortgage landscape in Portugal has evolved significantly in recent years, influenced by both local economic trends and broader European regulations. Historically, Portugal mortgage rates were known for being relatively low, but changes following the global financial crisis have led to reforms aimed at stimulating the housing market. 

Today, the Portuguese mortgage market is competitive, offering a range of products to both domestic and foreign buyers, including fixed-rate, variable-rate, and long-term mortgages.

For those interested in a mortgage for property in Portugal, there are specific options available even for non-residents. Getting a mortgage in Portugal as a foreigner is feasible, although the eligibility criteria vary by lender.

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Types of Mortgage Rates In Portugal

When financing a property in Portugal, you’ll typically come across three main types of mortgage rates: fixed, variable, and mixed. Each has its own pros and cons depending on your financial goals and risk tolerance.

Fixed rate mortgage

Offers long-term stability. Your interest rate stays the same for the entire duration of the loan, meaning your monthly payments won’t change. It’s a great option if you prefer predictability and want to avoid surprises in your budget.

Variable rate mortgage

Works differently. It’s tied to the Euribor (the European interbank rate), plus a margin set by the bank. As the Euribor goes up or down, so will your mortgage payments. This option can be more affordable in the short term but carries more risk if interest rates rise.

Mixed rate mortgage

Which gives you the best of both worlds. It starts with a fixed rate for a set number of years—usually 5, 10, or 15—and then switches to a variable rate for the remaining term. This approach offers initial stability, with the potential for lower payments later on if market rates stay favorable.

Portugal Mortgage Interest Rate

As of April 2025, mortgage rates in Portugal vary based on several factors, including the type of interest rate, loan-to-value ratio, and borrower profile. Here’s an overview:

Portugal Fixed Rates: Typically range from 2.5% to 4%, depending on the loan term and borrower’s financial profile. Some banks offer promotional fixed rates as low as 2.55% for the initial years .

Portugal Variable Rates: Generally start around 3%, influenced by the Euribor rate plus the bank’s spread. The exact rate depends on factors like the loan-to-value ratio and the borrower’s creditworthiness .

Average Rates: The average interest rate for new housing loans is approximately 3.95% as of early 2025 .

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Why to work with a Mortgage Broker in Portugal

1. Access to a wider range of products

One of the key mortgage broker benefits in Portugal is access to a broad spectrum of lending institutions, such as banks, credit unions, and private lenders. 

This gives borrowers a wider selection of loan programs, interest rates, and repayment terms, ensuring flexibility to find the best mortgage to suit their needs. 

2. Expert advice and guidance

A mortgage broker in Portugal has specialized knowledge of local regulations and requirements, making them an invaluable resource. 

They can provide tailored advice, help you understand your financial standing, and suggest the best mortgage products for your situation. Additionally, they can assist you in using tools like a Portugal mortgage calculator to estimate monthly payments and costs.

3. Understanding Foreign Clients

For expats, getting a mortgage in Portugal can be complex due to different regulations and documentation requirements. 

A broker who specializes in expat mortgage Portugal understands the unique challenges faced by international clients and can streamline the process, ensuring a smoother experience for those buying property from abroad.

4. Negotiating power and better terms

An overseas mortgage broker in Portugal often has established relationships with multiple lenders, giving them the power to negotiate better terms on your behalf. 

This could result in more favorable Portugal mortgage rates, reduced fees, and flexible repayment options, potentially saving you money over the life of your mortgage.

5. Time-saving

The process of getting a mortgage in Portugal involves multiple steps, from researching rates to handling paperwork. By working with a broker, you save valuable time as they manage these tasks for you. 

They can quickly compare Portugal mortgage rates, terms, and conditions, providing you with the most suitable options without the hassle.

6. No additional costs

Typically, in Portugal, mortgage brokers are compensated by the lending institutions, meaning there are no extra fees for you as a borrower. 

This makes using a broker a cost-effective choice, as you gain access to their expertise and wide network of lenders without incurring additional costs.

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Mortgage Broker License in Portugal

To work as a mortgage broker in Portugal, one must obtain the “Intermediário de Crédito” license from the Bank of Portugal.

This ensures that the broker meets specific standards of professionalism and ethics, providing reliable and accurate advice to those seeking a mortgage for property in Portugal.

How to Verify a Mortgage Broker’s License

To confirm whether a broker is licensed, you can search the Bank of Portugal’s official registry. This registry lists all authorized credit intermediaries and can be accessed through the Bank of Portugal’s website.

Documents for getting a Mortgage in Portugal

For non-residents, typical documentation for getting a mortgage in Portugal includes:

  • Passport
  • Portuguese Tax Number (NIF) 
  • Proof of Address (copy of the tenancy agreement)
  • Credit report
  • Last 3 pay slips
  • Recent bank statements
  • Most recent tax returns
  • Floorplan of the apartment /house

For more videos about investing or moving to Portugal, explore our YouTube channel here: YouTube Channel Portugal Residency Advisors.

How Can We Assist You?

At Portugal Residency Advisors, we team up with carefully selected top-tier mortgage brokers in the industry. We simplify the entire mortgage application process, managing all the paperwork from acquiring your NIF number to setting up your bank account, and coordinating with our mortgage partners on your behalf.

We’ll help you steer clear of common mistakes and pitfalls often faced by expats or first-time homebuyers, offering reassurance throughout the entire journey. If you’re ready to embark on finding your dream home, consider teaming up with us to ensure a smooth and stress-free experience.

Frequently Asked Questions About Reasons to work with a Mortgage Broker in Portugal

Yes, foreigners can get a mortgage in Portugal. Portuguese banks offer mortgages to both residents and non-residents.

Yes, Americans can get a mortgage in Portugal. Several Portuguese banks provide mortgages to U.S. citizens.

To get a mortgage in Portugal, you must choose a property, research lenders, get pre-approved, submit a formal application, and sign a promissory contract. After final approval, you’ll sign the deed with a notary.

Yes, you can get a mortgage in Portugal, whether you are a resident or a non-resident.

Mortgage interest rates in Portugal typically range from 3% to 5%, depending on the bank, the client’s financial profile, and the type of mortgage.

Mortgages in Portugal can be fixed or variable rate, usually tied to the Euribor rate. Non-residents can typically borrow up to 70-80% of the property’s value, with repayment terms of up to 30 years.

The process for foreigners is similar to that for residents: choose a property, get pre-approved, submit documents, sign a contract, and finalize the mortgage.

Yes, UK residents can get a mortgage in Portugal. Many Portuguese banks accommodate non-resident applicants, including those from the UK.

The steps include: finding a property, researching mortgage options, applying for pre-approval, providing necessary documents, securing a promissory contract, and finalizing the mortgage with the bank.

Mortgage rates in Portugal range from 3% to 5% for variable-rate loans. Fixed-rate mortgages may have slightly higher rates.