Even as a non-Portuguese citizen or when you are not a tax resident in Portugal, you can have your property financed by a bank in Portugal. As in the rest of Europe, interest rates are currently quite cheap. The financing can be linked to a fixed or variable interest rate. The variable interest rate is based on the Euribor. The Euribor is an interest rate set daily by a group of European banks. You can see the current rates here.
The interest rate on a Portuguese variable rate loan is linked to either the 3 or 6 month Euribor rate. The banks, in turn, increase this rate by their current margins. At the end of each period, the bank adjusts the interest rate to the average of the previous months. As a rule, non-resident buyers in Portugal can have up to 60-80% of the property value financed. The terms are up to 30 years with an age limit of 70 years. As in other European countries, bank offers differ not only in interest rates, but there are also many differences in repayment options and ancillary costs. The commissions for early repayment are fixed at fixed interest rates (2%) and variable interest rates (0.5%). You should therefore get information either from an independent financial advisor or from the individual banks.
We recommend that you do not only deal with one bank when it comes to financing. Within 2-3 months after the preliminary contract for the purchase of property in Portugal has been signed, the buyer must attend the notary appointment. Banks need about six weeks to make the final decision on a loan. In the course of the process, it is not uncommon for the bank to worsen the conditions that it initially guaranteed. In order not to depend on just one bank, buyers should speak to 2-3 banks at the same time.
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