WHAT BANKS DO AND NOT DO TO NON-RESIDENT CUSTOMERS

WHAT BANKS DO AND NOT DO TO NON-RESIDENT CUSTOMERS

It is not difficult to ask for a mortgage loan in Portugal, being a non-citizen and a non-resident, but it is important to notice some specificities that exist in the process.

1. 1. 1. It is not indifferent where you come from, these groups of countries have different general conditions
         1. Europe + US + CAN
         2. Other countries
         3. Countries with higher currency and economic risks
      2. Maximum % of amount financed regarding property value (or loan to value) and consequently minimum downpayment is the major segmentation criteria
         1. 70% – 80% for Europe + US + CAN citizens
         2. 50% a 70% as a general criterion for non- residents
         3. 50% for risky geographies
      3. Different currencies of your incomes may generate am haircut in customers adjusted incomes to calculate the maximum amount financeable.
      4. 50% is maximum value allowed by the banks for the ratio total loan monthly payments (actual + new loan) / monthly adjusted net income. That is the criteria that will determine maximum amount financed approved.
      5. Interest rates are not different to residents and non-residents and they are determined by customer score and loan to value proposed.
      6. In some cases, being a non-resident, means possibility of avoid life insurance, with a significant dow payment (25% to 30%).
      7. Documents needed to complete the loan file to submit to banks are the same for residents and non-residents, but banks tend to be more cautions regarding the need toprove that customer has effectively the needed downpayment (proof of funds).
      8. To have a mortgage loan approved, customers need to get previously the Portuguese fiscal number (NIF).
      9. The only official languages for Portuguese Banks are Portuguese, Spanish, French and English which means that documents sent in other languages need to be previously translated to one of the official languages, preferably English.
      10. It is possible to open bank accounts at distance and Deeds can be signed through a Power of Attorney issued to a representative of customers, but banks are very cautious in the way they validate those documents, only accepting very standardised texts.