Mortgage calculator

What the calculator does

The calculator uses standard amortisation, the same maths banks use: a fixed monthly instalment that repays interest and capital over the term you choose. The loan is the price minus your deposit. It shows the monthly payment, the loan-to-value ratio, the total interest and the total repaid. It also shows the net household income at which the payment would take about 35% of your income. That 35% is our comfortable benchmark, not the bank's limit (see below). The calculator assumes one rate for the whole term and does not include insurance, bank fees or stamp duty, so read the result as the core of your monthly cost, not all of it.

The Banco de Portugal rules banks apply

Every bank in Portugal follows a macroprudential recommendation from Banco de Portugal. A new version (Recommendation 1/2026) applies to loans whose credit assessment happens from 1 August 2026:

• Loan-to-value: up to 90% for a home that will be your own permanent residence, and up to 80% for any other purpose, such as a second home or a buy-to-let. The value is the lower of the price and the bank's valuation.
• Debt service-to-income (DSTI, the "taxa de esforço"): all your loan instalments together should not exceed 45% of your net monthly income, and the new instalment is tested as if interest rates were higher. Each bank may exceed the limit on up to 10% of its lending per half-year.
• Maximum term: 40 years if you are 35 or younger, 35 years if you are older. With two borrowers, the older one's age counts. The calculator's slider goes to 40 years, so if you are over 35, stop at 35.

These are ceilings. Each bank also applies its own criteria, and many cap the loan so that it ends by age 75–80.

Mortgages for non-residents

Portuguese banks do lend to non-residents, but usually less. In practice non-residents are typically offered 60–70% of the value, so they need a 30–40% deposit, which is why the calculator starts at 30%. This is market practice, not a legal rule: a non-resident buying anything other than their own permanent home is under the 80% ceiling anyway, and each bank sets its own lower limit. Income that a bank can easily verify, such as salary from the EU, UK, US or Switzerland, makes approval smoother. You will need a NIF before you can apply. Our guide to mortgages for foreigners covers the rest.

Euribor, spread, fixed and mixed rates

A variable rate is Euribor (usually the 3, 6 or 12-month index) plus the bank's spread, and it is reviewed on a schedule. A fixed rate stays the same for the whole term. A mixed rate is fixed for the first years and then becomes variable. The calculator takes one rate, 3.6% by default, as an example, so enter the rate from your own offer and then try it one or two points higher to see how exposed you are to a rise.

TAN vs TAEG: compare the full cost

The TAN is the nominal interest rate. The TAEG is the total cost of the credit expressed as a yearly percentage, including fees, taxes and mandatory insurance, as defined in Decreto-Lei 74-A/2017. Compare offers by TAEG, using the standardised European information sheet (FINE) that every bank must give you. Once you receive a binding offer, the bank must hold it for at least 30 days, and you cannot accept it in the first seven, a built-in reflection period.

Insurance and fees

Banks normally require life insurance and multi-risk home insurance. You do not have to buy them from the bank: by law it must accept a policy from another insurer if the cover is equivalent, and that is often cheaper. On top of that come one-off costs: the bank's valuation, an arrangement fee (often 0.5–1% of the loan), 0.6% stamp duty on the loan amount and the mortgage deed. Our buying-cost calculator adds all of them. If you repay early, the fee is capped by law at 0.5% of the amount repaid while the rate is variable and 2% while it is fixed.

Documents banks usually ask for

• passport or ID, and your Portuguese NIF;
• proof of income: recent payslips or accounts and your latest tax return;
• bank statements for the last few months and details of any other loans;
• for the property: the promissory contract (CPCV) if signed, the caderneta predial and the land-registry certificate.

Worked example: €300,000 with a 30% deposit

Price €300,000, deposit 30% (€90,000), loan €210,000 (70% LTV), 3.6% over 30 years:

In the base case you repay €343,712 in total, and the calculator suggests a net household income of about €2,728 a month to keep the payment near 35% of income. Stretching the term to 35 years saves €75 a month but costs almost €26,000 more interest. Remember that the €90,000 deposit is not all the cash you need: for a non-resident, buying costs and bank costs add about €30,585 more.