Mortgages step by step: the new rules for 2026
PARCERIA ER · Crédito habitação · atualizado em 2026-11-02
Since 1 August 2026, new Banco de Portugal (Bank of Portugal) rules on mortgage lending have been in force. Knowing how they work helps you understand how much you can borrow and prepare the process without surprises.
The rules that matter
- Maximum debt-to-income ratio of 45%: the total of all your repayments (home, car, cards, personal loans) should not exceed 45% of your net income. It used to be 50%.
- Financing up to 90% of the home's value for a permanent own home (80% for other purposes). The exception is the state guarantee for young buyers, which can allow 100%.
- Term: up to 40 years for borrowers aged 35 or under; up to 35 years for those over 35.
- Stress test: the bank simulates the repayment with an interest rate 1,5 points higher, to make sure you could cope with a rise.
Try it: our
mortgage simulator gives you an estimate of the monthly payment with the current Euribor.
Fixed, variable or mixed rate?
- Variable: Euribor + spread; the repayment changes with the Euribor.
- Fixed: the repayment stays the same for the whole term (or for the agreed period).
- Mixed: fixed for the first few years and variable afterwards. It is currently the most popular option.
If you want to repay early, the maximum fee is 0,5% on a variable rate and 2% on a fixed rate.
Step by step
- Simulate and prepare. Work out how much you can pay each month and gather the documents banks usually ask for: ID, payslips, IRS (income tax) return and assessment notice, bank statements and the Banco de Portugal credit liabilities report (mapa de responsabilidades).
- Pre-approval. With pre-approval, you know how much you can spend and you negotiate from a stronger position.
- Offer and promissory contract (CPCV). Once you have chosen the home, the offer is made and the promissory contract of sale and purchase (contrato-promessa, CPCV) is signed, usually with a deposit.
- Bank valuation. The bank sends a surveyor to value the property. Financing is based on the lower of the price and the valuation.
- Final approval and FINE. The bank provides the European Standardised Information Sheet (Ficha de Informação Normalizada Europeia, FINE), with all the terms. You have at least 7 days to review it.
- Deed. The purchase and the mortgage are signed on the same day and you receive the keys.
Why use a credit intermediary
A credit intermediary, authorised and registered with the Banco de Portugal, compares several offers and negotiates the spread, insurance and fees for you. At PARCERIA ER we work with a credit intermediation partner, as part of the same support throughout your purchase.
