If you’re searching for property, you may have come across the term assumable mortgage. While this financing option is not available in Portugal, there are plenty of alternative mortgage solutions that make buying a home—whether as a resident or international investor—straightforward and accessible.
At Immo Lusitania, we work with a vetted mortgage expert and a financial advisor to help our clients find the best mortgage options available in Portugal. Whether you’re buying a luxury estate, a beachfront villa, or an investment property, we’ll guide you through the process to ensure you make the right financial choice.
What is an Assumable Mortgage?
An assumable mortgage allows a buyer to take over the seller’s existing loan, keeping the same interest rate and terms. This option is popular in places like the United States, as it can allow buyers to benefit from favorable interest rates locked in by the seller.
However, in Portugal, assumable mortgages do not exist. Instead, buyers must apply for a new mortgage, but Portugal offers several flexible financing options that make property ownership an attractive and achievable goal.
Types of Mortgages Available in Portugal
1. Fixed-Rate Mortgage 🔒🏡
A fixed-rate mortgage provides a stable and predictable monthly payment, as the interest rate remains unchanged throughout the loan period.
✔ Best for: Buyers who want long-term financial security and protection against interest rate fluctuations.
✔ Loan Terms: Up to 30 years.
✔ Interest Rates: Slightly higher than variable rates but remain constant.
2. Variable-Rate Mortgage 📉📈
A variable-rate mortgage is linked to the Euribor index, meaning the interest rate can fluctuate based on market conditions.
✔ Best for: Buyers who are comfortable with market fluctuations and want to benefit from lower interest rates when available.
✔ Loan Terms: Up to 40 years, depending on the borrower’s age.
✔ Interest Rates: Can start lower than fixed rates, but may increase over time.
3. Mixed-Rate Mortgage 🔄💰
A mixed-rate mortgage combines both fixed and variable rates, offering a fixed interest period (e.g., 5-10 years) followed by a variable rate for the remainder of the loan.
✔ Best for: Buyers looking for initial stability with flexibility in the long term.
✔ Loan Terms: Between 20-40 years, depending on the lender.
✔ Interest Rates: Starts with a fixed rate, then shifts to a variable rate.
4. Interest-Only Mortgage ⏳🏦
An interest-only mortgage allows buyers to pay only the interest for a set period before switching to full capital and interest payments.
✔ Best for: Investors who want lower monthly payments in the beginning and plan to sell or refinance before principal payments start.
✔ Loan Terms: Typically up to 10 years of interest-only payments, followed by full amortization.
✔ Interest Rates: Can be higher than traditional loans but offer greater cash flow flexibility.
5. Non-Resident Mortgages for Foreign Buyers 🌍💼
Portugal offers specialized mortgage solutions for international buyers, making it easier to finance a second home or investment property.
✔ Best for: Expats, investors, and buyers from Switzerland, the UK, the US, and other countries.
✔ Loan Terms: Up to 70% loan-to-value (LTV) ratio for non-residents.
✔ Requirements: Proof of income, tax compliance, and a strong credit profile.
How to Get the Best Mortgage in Portugal
Getting the right mortgage isn’t just about finding the lowest interest rate—it’s about choosing a loan that fits your financial goals and lifestyle.
1️⃣ Choose the Right Mortgage Type – Decide between fixed, variable, or mixed rates based on your investment strategy.
2️⃣ Get Pre-Approved – Pre-approval gives you a clear budget and strengthens your negotiation position.
3️⃣ Gather Your Documents – Banks require proof of income, tax statements, and credit history.
4️⃣ Work with Experts – Partner with a trusted mortgage broker and financial advisor to secure the best terms.
5️⃣ Secure the Loan & Sign the Deed – Once approved, the mortgage is finalized, and you can complete your property purchase.
Why Work with Immo Lusitania?
At Immo Lusitania, we work with a vetted mortgage expert and a dedicated financial advisor to ensure our clients:
✔ Get the best mortgage rates from top Portuguese banks.
✔ Receive expert financial planning to align their loan with long-term investment goals.
✔ Access exclusive off-market luxury properties that qualify for financing.
✔ Navigate the entire mortgage process seamlessly, from pre-approval to closing.
With our guidance, you don’t have to figure it out alone—we handle all the details so you can focus on finding your dream property in Portugal.
Start Your Property Journey with Immo Lusitania Today
If you’re considering buying a property in Portugal and want to explore the best mortgage options, our team is here to help.
Whether you’re looking for a luxury villa, a countryside estate, or an investment property, we’ll ensure you get the right financing to make it happen.
📩 Get in touch today for expert mortgage advice and exclusive property listings!
🔗 Explore our listings: Immo Lusitania 🏡💰
📌 Disclaimer:
Assumable mortgages are not available in Portugal. The information provided is for general informational purposes only and does not constitute financial or legal advice. Mortgage terms and eligibility depend on bank approval, individual financial profiles, and Portuguese regulations. Please consult with a mortgage expert or financial advisor before making any financing decisions.
