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Mortgages in Portugal Are Still in High Demand

Mortgages in Portugal Are Still in High Demand

Many around the world may be feeling uncertain about whether or not they can still buy their dream home or investment overseas. The good news is that for some, uncertainty creates opportunity.


As Portugal continues to slowly open back up you'll find many businesses will be back up and booming again in no time, real estate markets will be raring to go and those who decided to wait it out, may find property prices go back up. 


So why not take advantage and grab your opportunity before it's too late, especially as there are now many, heavily reduced properties for sale across the Algarve. On top of this, financing options are still in full swing and are showing no signs of slowing. 


For example, Mr and Mrs Smith* recently purchased a property for 350,000€ and managed to obtain 80% financing (280,000€), payable over 25 years at 1.5% interest rate with an outcome of 1119.82€ per month. 


On the other hand, Mr and Mrs Jones* recently purchased a property for the same price, they obtained 80% finance (279,900€) over 37 years at 1.5% which resulted in a lower monthly payment of 775,.77€.


Portuguese are now offering interest rates as low as 1.1%, this would make the monthly payments smaller. We have a 3 bedroom townhouse for sale in Vila Sol which has recently been reduced to 350,000€ and would make a fantastic holiday home or rental investment due to the location's popularity. 


Another example would be Mr Doe*, he purchased a property for 680,000€ and managed to obtain 60% (400,000€) funding at an interest rate of 1.2% payable over 30 years, monthly payments are 1267.64€. A similar property would be this 9 bedroom farmhouse for sale in Vila do Bispo recently had a 250,000€ reduction, now just 700,000€ it is a great home if you are looking to relocate to Portugal permanently. 



There are many contributing factors towards what options you have when looking for financing in Portugal, one of the most important would be age as you can only get financing for up to 40 years until the age of  75 or 85, depending on the bank. 


On the flip side, a great advantage of Portuguese mortgages is you can do it from the comfort of your own home! Experts are able to provide all the information you need or advise what information they require so if you already have a property in mind, get in touch with the team.


Understandably, you may want to view the property but are currently not able to which is why virtual tours are now all the rage. Inform the team what property interests you, they’ll get someone to film the property answering any questions you may have.