Best Bank to get a home LoanThe best bank to get a mortgage loan
When you need a home loan to fund a home in Portugal, it would be advisable to begin the arrangement of your Portugal home loan almost before you do anything else. Meticulous due care will allow you to get a good picture of how much you can afford to buy your Portugal home and make the necessary payment each month.
If you fail to clear the full details of the finances of your Portugal real estate transaction, you may be left in a small mess with a less lucrative mortgaging business at a higher lending interest level. In spite of the great degree of insecurity of the economy in recent years, not to speak of an instable residential sector, all large Japanese creditors have continued to offer loans to eligible persons, even foreign citizens, buying real estate in Portugal.
As a rule, credit periods of up to 50 years for domestic customers and 30 years for non-residents are offered by a bank. When the loan matures, the loan may be up to 70 or 80 years old, according to the creditor. In order to obtain a Portugal mortgages, you usually need a minimal investment of 20% of the sale value of the real estate, since the amount of the loan will vary between 60% and 80% of the sale value or the appraisal value, according to the creditor, with floating or floating interest rates available.
Floating or floating interest coupon? The majority of Portugal's creditors provide different kinds of mortgages redemption option, either at a set or floating interest rat. Interest charges on a floating interest Portugal mortgages are either tied to the interest charge of the European Central Bank (Euribor) at three or six months and are raised by the amount of the bank's applied interest spread (profit).
Euribor interest rates are fixed every day by a body of EU banking institutions and are usually an indication of what interest rates the EU banking institutions make available to each other. Prepayment penalties for a floating interest bearing mortgages are 0.50% in accordance with the Ordinance of the Bank of Portugal.
Floating rates allow you to plan your next mortage payment because the costs per month stay stable during the fixed-rate term and you are shielded from further interest rates rises. You can obtain fixed-rate mortgage loans from some creditors and the fixed-rate term can be between one and 30 years.
At the end of the fixed-rate term, the mortgages are converted into floating interest mortgages unless the interest date is set for the full term. Prepayment during the fixed-rate zone is subject to a 2% fine under the Bank of Portugal Ordinance. As Portuguese bankers have become more cautious following the recent real estate crisis in Portugal, most creditors are now offering mortgages only on a repayable loan terms - with interest and payments equal to the amount of the investment loan - with interest on the loan at around 6%.
When analyzing your hypothecary files for authorization, a bank will consider the following two criteria: your finances and the value of your real estate. A bank requires evidence of your ongoing revenues such as salaries, dividends, capital gains, annuities and rent. Institutions take into account the net incomes of each candidate, as evidenced by wage and annuity accounts, declarations of taxes and bank account statement.
This information will help the creditor to determine whether or not you are fit to pay the cost of your Moroccan loan. This bank commissions an independant surveyor to assess your real estate. A number of documents are required by creditors to handle a request for a loan.
It' also noteworthy that home contents and endowment policies are generally mandatory for all persons wishing to take out a mortgage in Portugal, although some estate agents can provide loans if this is not the case. Some houses are still owned and can be obtained from Portugal's bank. A number of creditors are willing to provide 100% Loan-to-Value (LTV) loans to move reposted real estate in their accounts.
If you do not maintain your repayment on a secure home loan, your home in Portugal may be at stake.