As mortgage rates in Portugal continue their downward trend, the real estate market is opening up as a golden opportunity for foreign buyers.
Whether you’re interested in investing in rental properties, purchasing a vacation home, or relocating, the current financial climate makes it an excellent time to consider buying property in Portugal.
According to the National Statistics Institute (INE) of Portugal, the interest rates on housing loans decreased for the third consecutive month, standing at 4.606% in April 2024, a drop of 0.7 basis points from the previous month of March. This trend marks a significant change after nearly two years of rising rates. Notably, the interest rates for new housing loans have been declining for six months, falling below 4% for the first time in almost a year, in fact currently it’s possible to get a fixed rate for 3 to 30 years and typical rates are between 2.7% and 2.99% depending on the product and criteria
The maximum loan available is also favourable with loans now available for between 70% to 80% of the purchase price and maximum terms of up to 30 year and to a maximum age of 80
Loans are available for purchases, re-finance, capital raising, home improvements and bridging finance
Lower interest rates often stimulate property market activity, leading to increased demand and potentially rising property prices. Buying now can secure a property at a lower cost with the potential for future appreciation.
Portugal offers a high quality of life, characterised by a mild climate, beautiful landscapes, and a rich cultural heritage. Cities like Lisbon and Porto blend historical charm with modern amenities, while coastal areas such as the Algarve offer stunning beaches and a relaxed lifestyle.
If you are looking to buy a property in Portugal or Spain and need a mortgage, email mark@vci-network.com for the latest criteria