Category:
Buying Property
Fortunately, Portugal does have an outstanding record for welcoming ex-pats. The conditions for foreigners getting a mortgage are more or less straightforward.
If you are a foreigner or non-resident of Portugal looking to buy Algarve property and are looking to do so with a mortgage to finance the purchase, now is a great time to do so as the banks are now lending again due to the economic recovery in Portugal and the solid state of the property market.
For the most part, mortgages are the most popular way to finance buying a property in Portugal. Not only can residents apply for a mortgage from Portuguese banks but non-residents are also able.
The current variable mortgage rate in Portugal starts at approximately 3.3% per year based on a 30% loan to the overall value of the property.
Those rates can increase if you require more finance for instance 60% to 70% loan to property value. If you are looking for fixed rates they are available at around 4.1% for up to 5 years based on loan-to-value ratios of up to 70%.