Compare Mortgages in Portugal

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65 live offers compared from 10 providers, from 0.70% initial. Updated daily.

What are mortgages in Portugal?

A mortgage (credito habitacao) is a long-term loan secured on a property, used to buy a home and repaid over up to around 40 years. Portuguese mortgages are predominantly variable-rate, priced as a spread (the bank margin) over Euribor — usually the 6- or 12-month Euribor — though fixed and mixed-rate options have grown as borrowers seek certainty. Lenders finance a share of the property value (loan-to-value), require a deposit, and typically bundle life and home insurance. The mortgage is the largest financial commitment most households make.

How the Portuguese market works

Rates hinge on Euribor: when Euribor rises, variable-rate repayments increase, as many Portuguese borrowers felt during recent rate hikes. Banks compete on the spread over Euribor, on fixed-rate offers, and on bundled products (salary domiciliation, insurance, cards) that lower the margin. Maximum loan-to-value is generally around 90% for a main residence (less for second homes and non-residents), and affordability is assessed against income and the DSTI (debt-service-to-income) limits set by the Banco de Portugal. Stamp duty and property transfer tax (IMT) add to purchase costs.

Benefits

Home ownership — spread the cost of a property over decades instead of paying rent.

Competitive spreads — banks discount the Euribor margin for bundled products and strong profiles.

Rate choice — pick variable, fixed or mixed to balance cost against certainty.

Long terms — repayment over up to around 40 years keeps monthly instalments manageable.

How to choose

Compare the TAEG and the spread over Euribor, and decide between variable, fixed and mixed rates based on your tolerance for payment changes. Factor in the bundled products required to get the best spread and whether they suit you. Check the loan-to-value offered, the term, and total costs including valuation, stamp duty, IMT and notary fees. Shop the life and home insurance separately, since you can switch these. Confirm the offer respects Banco de Portugal DSTI affordability limits.

Leading providers in Portugal

Caixa Geral de Depositos, Millennium BCP, Banco BPI, Novo Banco and Santander Portugal are the largest mortgage lenders, competing hard on spreads and fixed-rate deals. ActivoBank offers digital mortgages, while BBVA Portugal and EuroBic bring additional competition, particularly for well-qualified borrowers and non-residents. Because spreads and bundled-product conditions differ significantly between banks, and mortgage intermediaries can help compare, obtaining several offers is the key to reducing the long-term cost of a home loan.

What it costs

Mortgage pricing centres on the spread over Euribor, with all-in variable rates and fixed-rate offers moving with the market; the brief indicates advertised figures from around 0.7% (spread or promotional element) upward, plus the Euribor index for variable loans. Upfront costs include the bank arrangement and valuation fees, stamp duty on the loan, property transfer tax (IMT), notary and registration fees, and bundled life and home insurance. Compare the TAEG and the total cost, and remember variable repayments change with Euribor.

Protections and regulation

Mortgage lending is regulated by the Banco de Portugal, which sets DSTI and loan-to-value macroprudential limits and requires standardised pre-contractual information (FINE) so borrowers can compare offers. Rules protect the right to shop around for and switch the bundled life and home insurance. Borrowers facing difficulty have access to statutory support regimes (PERSI and related mechanisms). Early repayment fees are capped by law (lower for variable-rate loans), and lenders must assess affordability before approving credit.

Common questions

Variable or fixed rate? — Variable tracks Euribor and can change; fixed gives certainty at a usually higher initial rate.

How much deposit do I need? — Typically at least 10% for a main residence, more for second homes and non-residents.

Must I buy the bank insurance? — No, you can switch life and home insurance to a cheaper provider.

What extra costs apply? — Stamp duty, IMT, valuation, notary and registration fees on top of the loan.

Mortgages in Portugal — FAQ