A non-resident mortgage: the 30-40% deposit nobody budgeted for
A foreign buyer worked out their budget assuming a 10% deposit "like back home", found the property, and then hit the wall: as a non-resident, the bank wanted 30–40% down. That single number reshapes what you can actually afford in Portugal, and it is far better to discover it at the planning stage than after you have made an offer you cannot fund.
The deposit gap
The loan-to-value a bank will offer depends heavily on whether you are resident, and the difference is large enough to change which properties are within reach.
Non-resident: LTV 60–70%, i.e. a deposit of 30–40%.
Resident: up to 80–90%, i.e. 10–20% down.
Rates: ~3–4.5%, and better with a strong deposit and clean documents.
Affordability rule: banks generally keep your total debt at ≤50% of net income. Verify current terms.
What improves your odds
- Buyers from the EU, UK, US and Switzerland tend to get approved most easily, because income verification is straightforward and the bank can read the documents.
- You will need a NIF and clear proof of income before the bank will seriously engage — the same NIF that everything else depends on.
- The "crédito jovem" scheme for under-35s exists but applies only to a primary home, not an investment property, and needs the home to be properly licensed.
- A stronger deposit buys you a better rate — the two are directly linked, so if you can put more down, you pay less over the term.
From the bank's side, the logic is not personal. A non-resident borrower with foreign income is harder to assess and harder to pursue if things go wrong, so the bank protects itself by lending a smaller share of the value and asking you to carry more of the risk in cash. That is why the deposit gap is so large and so consistent. Understanding the reasoning helps you plan around it rather than take it as a surprise: the fix is simply to know your real LTV band before you start shopping, not after.
It is also worth getting an indication of what you can borrow before you fall for a specific property. A pre-assessment, with your NIF and income documents in hand, turns "can I afford this?" from a guess into a number. Combine that borrowing figure with the deposit you actually have and the closing costs on top, and you get a truthful maximum purchase price. Shop within it and the mortgage becomes a formality; shop above it and you risk losing a deposit on a deal the bank was never going to fund.
The full picture is in mortgages for foreigners. The deposit sits on top of your closing costs, so total both on the cost calculator and read IMT for non-residents. Moving the deposit over cheaply is covered in transferring money to Portugal.
Re-locant.com is a free, independent guide.
Guidance, not legal or tax advice — verify your case with official sources.