Benefits of a Portuguese Mortgage


By using a locally based mortgage you have the option to increase your budget to buy the property you really want rather than the one you can budget for. This will help you achieve greater rental yields to meet the investment return targets that you have set for your property.

Foreign exchange risk mitigation

By obtaining a Euro denominated mortgage, the foreign exchange risk can be reduced for clients with a different home currency. It offers investors the ability to hedge against future possible exchange rate movements.

Foreign exchange returns

Many clients have obtained a Euro denominated mortgage to allow them to speculate on the exchange rate movement between the Euro and their home currency. With redemption charges capped at 0.5% (see below) you have the discretion to repay the Euro loan at a time of your choosing and most importantly at a rate of your choosing thereby potentially allowing you to make a foreign exchange gain on your property at a future date.

Early redemption of a Portuguese mortgage

A Portuguese mortgage may be repaid at any time during the loan term in part or full. The early redemption penalty is capped at 0.50% for variable rate acquisition mortgages. Effectively a charge of Euro 5 for every Euro 1,000.00 you pay back early. If a fixed rate product is chosen then the early redemption charge is capped at 2% during this period and reverts to 0.5% when the variable rate period starts.