Moving abroad and buying property in Portugal can be a daunting experience, especially if you don't speak the language, or if you don't have the right advice or guidance. Here at idealista, we are here to help you every step of the way in your move to Portugal, from details about property prices in Portugal, so you can start your property search, studies about the best places to live in Portugal for expats, to paperwork for buying a house.
Today, we're going to focus on the financial side of things, an unavoidable and highly important part of the buying process in Portugal. After the process of finding the property you want to buy, and before the deed is signed and the move is carried out, there is a critical step in the middle that will weigh on the life (and accounts) of the future buyer for several years. Taking out a mortgage. At this point in the process, several doubts usually arise. "Will my savings be enough? Can I pay for this loan with my salary? Should I choose a fixed or variable type of credit?", among other frequent questions.
It was exactly to help answer customers' questions and to bridge the gap with the bank when applying for a home loan that the figure of the credit intermediary was created in the market. Also known as a mortgage broker or mortgage advisor, this activity "is regulated and registered by the Bank of Portugal, and it must be totally transparent in the communication of its services and the commissions it can apply", explain the mortgage experts at idealista/creditohabitação, who also advise buyers to "always ask if the service is free or if something is going to be charged and, in this case, find out what the cost is and if it implies any commitment".
In order to find the best loan, good practices recommend consulting the market widely and comparing offers from various banks, at various levels (looking beyond the spread). "Carrying out this process on your own, in the right way, requires a lot of effort and time. On the other hand, lack of knowledge can lead to missing opportunities to get the best price and/or the best possible terms for a home loan, according to your needs and economic profile", warn experts. For this reason, using a mortgage broker to guide you through the different mortgage options on the market that suit your case is highly recommended, with the advantages far outweighing the drawbacks.
What does a mortgage broker do?
- A mortgage broker will explain the different options offered by the market, informing the customer about the conditions of each product.
- They will be able to solve customer doubts whenever necessary.
- They will often be able to get special conditions from banks due to the volume of customers.
- They will make offers at the banks that are suitable for you, all while helping you choose the most convenient option for your needs.
Analyse your specific case and get in touch with idealista's mortgage advisors at idealista/creditohabitação