Who can get credit, LTV and effort rate limits, maximum terms by age, all-in costs, documentation, deadlines and how to align everything with the CPCV - explained in a practical way for international buyers.<\/em><\/p>\n\n\n\n In Portugal, banks finance so much residents<\/strong> as non-residents<\/strong>. The difference lies in the limits and proof of income. For owner-occupied and permanent housing (HPP), the macroprudential recommendation of the Bank of Portugal<\/a> (BdP) establishes a LTV ceiling<\/strong> (loan-to-value ratio) of 90%<\/strong> for HPP and 80%<\/strong> for other purposes (secondary\/rental); the value of the property is the smaller<\/em> between price and valuation. Source: BdP<\/a>.<\/p>\n\n\n\n To non-residents<\/strong>, Many banks apply more conservative LTV ceilings (typically 65-75%<\/strong>), even when the purpose would be HPP if they resided in the country. E.g. Santander<\/a> spells out solutions for non-residents and additional documentation, reflecting industry practices.<\/p>\n\n\n\n If you need dedicated support for international buyers (financial brief, \u201coffer math\u201d in 48 hours and calm negotiation), get to know us at Buyer's Agency<\/a> and book a chat at \/schedule<\/a>.<\/p>\n\n\n\n The banks evaluate the effort rate<\/strong> (credit charges \/ net income) to ensure sustainability; the macroprudential recommendation defines limits and exceptions (general rule, 50%<\/strong> with limited cushions). BdP - macroprudential measures<\/a> | Bank Customer Portal<\/a>.<\/p>\n\n\n\n Since 1 April 2022, the maximum maturity of new mortgage loans has been indexed to the borrower's age<\/strong> at the time of hiring:<\/p>\n\n\n\n ESRB notification<\/a> | BdP FAQ<\/a>.<\/p>\n\n\n\n Variable<\/strong> (Euribor + spread) adjusted at each review (3\/6\/12 months). Fixed<\/strong> gives predictability (contracted rate for all or part of the term). Mixed<\/strong> combines both (fixed initial period followed by variable). The choice should take into account the time horizon, rate volatility and your currency of income (exchange rate risk for salaries outside the euro).<\/p>\n\n\n\n For a complete overview of acquisition costs, see also: Taxes and costs when buying a house in Portugal<\/a>.<\/p>\n\n\n\n Base<\/strong> (varies per bank): ID, NIF, proof of income (IRS\/equivalent declaration, receipts\/salary slips), bank statements and statement of liabilities (country of residence). Documents - Santander<\/a> | UCI - Non-residents<\/a><\/p>\n\n\n\n Property:<\/strong> Caderneta Predial, Certid\u00e3o Permanente (Land Registry), Licen\u00e7a de Utiliza\u00e7\u00e3o (or exemption), Certificado Energ\u00e9tico. A evaluation<\/strong> can be reused (up to 6 months) if it complies with the rules of an expert registered with the CMVM. BdP FAQ - Evaluation<\/a><\/p>\n\n\n\n If you need support with your NIF, bank account and paperwork, take a look at our guide: TIN, bank account & essential documents<\/a>.<\/p>\n\n\n\n In a solid CPCV, include two clear suspensive conditions: (i) Approved financing<\/strong> until date X (with a minimum amount and indicative rate) and (ii) Valuation \u2265 price<\/strong> (or \u2265 agreed minimum value). If the valuation falls below this, the contract dictates what happens: renegotiation, reinforcement of equity or cancellation without loss of the down payment. See our guide: Understanding the CPCV in Portugal<\/a>.<\/p>\n\n\n\n Would you like our \u201cOffer Math\u201d model in 48 hours? Tick here<\/a>.<\/p>\n\n\n\n It's rare. The banking practice for non-residents is generally between 65-75%<\/strong> of LTV, even when the property would be HPP. Confirm limits with your bank\/intermediary. E.g. Santander<\/a><\/p>\n\n\n\n As a general rule, banks work with DSTI \u2264 50%<\/strong>, with limited margins for exceptions. BdP - Macroprudentials<\/a><\/p>\n\n\n\n Depends on age: \u226430 years (40 years), 31-35 (37), >35 (35). BdP FAQ<\/a> | ESRB<\/a><\/p>\n\n\n\n Not by law<\/strong>, but it is often required by banks<\/strong>. You can choose an insurer. Bank Customer Portal<\/a> | Santander<\/a><\/p>\n\n\n\n 0,6%<\/strong> for terms > 5 years (0,5%<\/strong> \u2264 5 years), applied to the loan amount. ePortugal<\/a><\/p>\n\n\n\n The bank limits LTV to smaller<\/em> between price and valuation. Therefore, include in the CPCV a evaluation condition<\/strong> and financing<\/strong> with deadlines. CPCV Guide<\/a><\/p>\n\n\n\n For PPH in variable rate<\/strong>, the commission is suspended until 31\/12\/2025<\/strong>. Fixed rate, maintained (until 2%). BdP<\/a> | DECO PROteste<\/a><\/p>\n\n\n\n From pre-analysis to deed: 4-8 weeks in linear processes. Plan for more time if you are a non-resident (additional documents and validations).<\/p>\n\n\n\n If you're planning a purchase in Cascais\/Lisbon, talk to us: Buyer's Agency<\/a>, \/schedule<\/a> and download the Buyer's Guide<\/a>. For customer references, see \/testimonials<\/a>.<\/p>\n\n\n\n Key Takeaway:<\/strong> In Portugal, the success of financing for foreigners comes down to three things: realistic all-in figure<\/strong>, LTV\/DSTI aligned<\/strong> and a CPCV with valuation and financing clauses<\/strong> well-written.<\/p>","protected":false},"excerpt":{"rendered":" How credit works for foreigners - LTV, documents, deadlines.<\/p>","protected":false},"author":1,"featured_media":3388,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[219,216],"tags":[],"class_list":["post-3058","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-insights","category-guides-and-howto"],"acf":[],"_links":{"self":[{"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/posts\/3058","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/comments?post=3058"}],"version-history":[{"count":3,"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/posts\/3058\/revisions"}],"predecessor-version":[{"id":3479,"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/posts\/3058\/revisions\/3479"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/media\/3388"}],"wp:attachment":[{"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/media?parent=3058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/categories?post=3058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/livinglocal.pt\/en\/wp-json\/wp\/v2\/tags?post=3058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Where to start (and what changes for foreigners)<\/h2>\n\n\n\n
How much can I ask for? (LTV, DSTI and maximum deadlines)<\/h2>\n\n\n\n
LTV - Loan-to-Value<\/h3>\n\n\n\n
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DSTI - Effort Rate<\/h3>\n\n\n\n
Time limits by age<\/h3>\n\n\n\n
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Variable, fixed or mixed rate?<\/h2>\n\n\n\n
All-in financing costs (in addition to the instalment)<\/h2>\n\n\n\n
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Documents: residents vs. non-residents<\/h2>\n\n\n\n
Deadlines and typical schedule<\/h2>\n\n\n\n
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CPCV: clauses for borrowers<\/h2>\n\n\n\n
Risks to watch out for (and how to mitigate them)<\/h2>\n\n\n\n
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All-in checklist before the proposal<\/h2>\n\n\n\n
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FAQ - frequently asked questions<\/h2>\n\n\n\n
I'm a non-resident. Can I get 80-90% LTV?<\/h3>\n\n\n\n
What is the maximum effort rate?<\/h3>\n\n\n\n
How long can I take out a 40-year loan?<\/h3>\n\n\n\n
Is life insurance compulsory by law?<\/h3>\n\n\n\n
How much Stamp Duty do I pay on my credit?<\/h3>\n\n\n\n
If the valuation falls below the price?<\/h3>\n\n\n\n
Can I amortise without penalty in 2025?<\/h3>\n\n\n\n
How long does it all take?<\/h3>\n\n\n\n
Useful resources<\/h2>\n\n\n\n
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Next steps<\/h2>\n\n\n\n