credit housing

Back

{{#if hasSubMenu}}

{{menuName}}

{{else}}

{{menuName}}

{{/if}}

(+351) 924 073 827

(+351) 961 772 099

(+351) 927 695 182

(+351) 924 073 827

HOUSING CREDIT

The process of buying a house because it is an expensive option, should be well analyzed in a rational and well planned way.

Any person may use this claim, regardless of his nationality, and the period may be up to 40 years.

If you have to resort to bank financing you are subject to some care ranging from the clearance of the stress rate to the decision to maintain a fixed or variable interest rate for the payment of the loan and life and property insurance.

Also pay attention to the marital status, in what concerns the marriage regime in case you are married.

To feel more comfortable and help with your planning, we inform you:

Value of the house you can buy

First you have to decide and analyze how much you can spend. The ideal value depends on several factors, such as location, typology, type of property (apartment or villa), and the final result, and most importantly, will be a monthly installment during the life of the loan.

The credit institution for the granting of the financing uses several criteria for decision-making, namely:

- Professional stability
- Effort rate
- Valuation value of the property to be purchased
- Use of equity

Professional stability

- For the funder it is very important the type of bond and also the employer, because the risk analysis of this type of credit is made to consider a long term, and can go up to 40 years. The preference goes to employees, or liberal professionals or ENI with high-specialty professions.

Effort rate

- The effort rate, it is a calculation that focuses on the declared income, deducting the IRS and social security, the maximum value of indebtedness capacity is 33%, it should be noted that in the case of being 2 acquirers, the sum of income is considered, for example: a couple with a net monthly income of 1000€, can be indebted up to 333€ (this calculation is made on the basis of 12 months of income, so the amount of indebtedness is usually higher, because in Portugal are 14 months of wages – holiday subsidy and Christmas). It should be noted that this example is done in the case of employees, because in other types of links, calculations have other rules. (all this information expressed here can be negotiated, as there are situations where the stress rate can rise up to 50%).

Valuation value of the property to be purchased

- Exceeding the previous assumptions, the valuation of the property proves to be a very important factor, because it will be the property to be given as a real guarantee of financing, and it will have to have a commercial value so that the bank has the financed capital safeguarded, that is, in case of non-compliance, the value in debt is recoverable with the disposal of the property.

Use of equity

In 2018 Banco de Portugal approved a recommendation for the banking system Portuguese, whose financing limits are:

- 90% for credits for own and permanent housing;
- 80% for credits for purposes other than own and permanent housing;
- 100% for credits for the acquisition of real estate through real estate leasing contracts.

That is, the buyer will have to have in equity the amount necessary to make up the total purchase of the property.

BUY NEW OR USED?

- It is an option that has to be very well considered, because when buying a new property, you will benefit from the guarantees of construction and others, the application of more modern materials, and often the price difference is not very sharp. And in the case of the used, you may run the risk of needing works, in plumbing and electrical systems, which is very much on the total cost, and for financing purposes may make it difficult, to mention that the values of the works may be different from those expected, because some complications may arise, so in the budget, margins must be created to be able to ensure the full execution of the works.

Initial costs: entry, taxes and commissions

Before proceeding with the purchase of the house, you need to be sure of the costs, documents and taxes that will have to be borne.

In addition to the entry amount, it is still necessary to pay taxes: the Municipal Tax on Onerous Real Estate Transactions (IMT) and the Stamp Duty (IS); and bank fees (file costs, dossier committee, evaluation committee, formalisation committee, purchase register and mortgage registration).

Count two insurance

In addition to the monthly provision of the credit, the benefits of two insurances will be added: life and multirisk. This is because these are two insurances required by banks in a housing credit.

The future costs of buying a home

After the acquisition, there are other costs that should be taken into account, however, depend on some aspects.

If the property that was purchased was in a building with condominium, it is necessary to take into account the payment of monthly quotas and / or other costs that may arise as painting the building, some common repair, (we suggest a pre-consultation to the condominium manager to be able to know the current accounts), a condominium insurance, among other related (to mention that the multirisk insurance of the fraction, which is mandatory by law, includes its proportionality of the common areas, not being mandatory to adhere to the condominium insurance).

One should also consider another tax: the Municipal Property Tax (IMI), to be paid annually, and which can be divided into installments, depending on the amount.

The process of buying a house because it is an expensive option, should be well analyzed in a rational and well planned way.

Any person may use this claim, regardless of his nationality, and the period may be up to 40 years provided that the maximum age of one of the tenderers at the end of the loan does not exceed 75 years.