Financing and mortgages

Do you need to finance a real estate purchase for your retirement or invest? It’s not always easy, but this information will help you.

Credit to Portugal

Despite some low-interest fixed-rate offers, Portuguese banks offer a large majority of loans with variable rates indexed to the Euribor 12.

Only Portuguese people can obtain 100% funding. In addition, you will have to count the acquisition costs between 2.5% and 7% of the selling price, as well as the purchase costs. costs related to the installation of the loan of a minimum of 1000€.

Borrowing from a French bank

Most French banks will not agree to finance your purchase in Portugal, even if your relationship with your bank is healthy and your advisor tells you that there is no problem.

Choosing another financing solution

You can also call upon a specialised body or your loan will usually be 80% of the price of the property, you will still have to bring the remaining 20%.

By choosing this solution you will get fixed rates and lower than in Portugal. In addition , editing will be easier because you will speak French and be close to your home.

We recommend 2 establishments, CIC Iberbanco and BCP France.

Prepare your funding before starting visits

In 99 % of cases, potential sellers will not accept include a suspensive loan clause in the promise of sale. In fact, if your loan request is refused by the bank, and you have signed a sales contract you will lose your security deposit. And with the current dynamism of the Portuguese real estate market, it is very likely that the good you chose will be sold before you have obtained a proper credit agreement.

It is therefore essential to contact bank credit institutions before visiting real estate in Portugal.

Bank borrowing for pensioners

For pensioners, age at the time of purchase is a concept to be taken into account. one he vast majority of banks do not lend after 70 years. If you are 62 years old, this means you can only borrow for 8 years. However, there may be exceptions.