40 year mortgage loans given to only those 30 and below

Written By Lara Silva

If you’re over 30 and want to buy a house in Portugal through a mortgage loan, we have bad news. On Friday, April 1, 2022, the Bank of Portugal’s recommendation to limit the maximum duration of new mortgage loans comes into place. Only those 30 and below are now eligible for a 40-year mortgage loan.

This means that those over 30 in Portugal, including residents and non-residents, will not be able to enjoy more affordable monthly mortgage payments and will have to pay off their property in a shorter time. 

Clients over 35 years old can receive a mortgage loan of a maximum of 35 years. Clients between the ages of 31 and 35 can receive a mortgage loan of a maximum of 37 years. Only those 30 or below can get a mortgage loan of a maximum of 40 years.

Let’s go through some numbers. If you are looking to buy a €200,000 property, a 30-year mortgage loan would cost you €643,28 a month, while a 40-year mortgage loan would cost you €505,71, a difference of €137,57 (with a 1% interest rate).

This new limit will not change existing mortgage loans but only apply to new ones starting on Friday. The average age for accessing a mortgage loan in Portugal is 33,2 years old. Portuguese banks offer mortgages to both residents and non-residents, making it easy for internationals to purchase property through a mortgage loan. However, non-residents must pay a minimum deposit for a mortgage of 30%, while for residents this stands at 10% – 15%, depending on the situation.

Guide to Real Estate: Buying a House in Portugal
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