Mortgage in Portugal

First home: up to 85% of the appraisal value, not exceeding 90% of the property’s purchase price.

Second home: up to 80% of the lower value between the appraisal and the purchase price.

Financing starts from 25,000€. And if you’re between 18 and 35 years old, we can finance up to 100% of the value.

Interest rate: this is the percentage the bank charges as compensation for granting the loan.

NAR (Nominal Annual Rate): the NAR— or Nominal Annual Rate — is the percentage that indicates the amount of interest you will pay on the loan amount over one year. It does not include taxes or other costs. For variable-rate loans, the NAR corresponds to the index rate plus the bank’s spread.

APR (Annual Percentage Rate of Charge): the APR indicates the total cost of the credit over one year.

It includes interest (such as the NAR), as well as other associated charges such as fees, mandatory insurance and taxes. It reflects the sum of the total loan amount plus all credit costs (interest, fees, taxes and other charges).

Total Amount Payable: this is the total amount you will have to pay the bank over the entire loan term.

Euribor: the Euribor (Euro Interbank Offered Rate) is a reference index used in the euro area’s interbank market.

It is calculated as the average interest rate applied between major banks and varies according to the term (from 1 week to 12 months).

The 6-month Euribor is the index typically used for variable-rate mortgage loans.

Mixed rate: combines elements of fixed and variable rates.

A fixed rate is applied during the initial period. After that, the rate becomes variable and adjusts based on an index rate, such as Euribor, plus the bank’s spread.

Variable rate: an interest rate that can change over time, as it depends on an index rate (such as Euribor) plus the bank’s spread. If the index rises or falls, the interest rate on the loan will adjust accordingly.

Fixed rate: guarantees a fixed monthly payment throughout the entire loan term.

SWAP rate: like Euribor, this is a market rate, not defined by the bank, and its value varies depending on the term. For fixed-rate mortgage loans, the 3-year SWAP rate is used, calculated on the business day before the contract and rounded to three decimal places.

Monthly payments reviewed every 6 months.

Spread of 0,50%
NAR 2,639%
APR from 3,5%5 to 4,7%⁽⁵⁾

A mixed rate combines a fixed rate for an initial period (2, 3 or 4 years) with a variable rate for the remaining loan term. 

In the first 2 years:

• NAR of 2.700%
• APR from 3.6%⁽²⁾ to 4.9%⁽²⁾

In the first 3 years:

• NAR of 2.750%
• APR from 3.6%⁽³⁾ to 4.9%⁽³⁾

In the first 4 years:

• NAR of 2.800%
• APR from 3.6%⁽⁴⁾ to 4.9%⁽⁴⁾

A fixed rate is an interest rate that stays the same throughout the entire loan term, ensuring a fixed monthly payment.

For 10 years:

• NAR of 4.400%
• APR of 5.2%⁽⁶⁾

For 20 years:

• NAR of 4.400%
• APR of 5.1%⁽⁷⁾

For 30 years:

• NAR of 4.400%
• APR of 5.1%⁽⁸⁾

The spread applied to a variable or mixed-rate mortgage depends on the products you hold with the bank:

Base spread of 1.90%, with no products contracted.
Reduced spread of up to 0.80%, when eligible products are contracted.
To benefit from the lower spread, you must:

• receive your salary into a Santander current account where you are the primary account holder
• pay your monthly mortgage instalments from a Santander current account (you may use an account from another bank, but you should check the spread advantages of holding your account with us)
• contract and maintain at least 2 of the following products: a credit card, a “Conta Pacote” current account, or an eligible protection insurance (distinct from the mandatory insurances)
• maintain all mandatory insurances.

If your property has an A+ or A energy rating, and as long as this rating is maintained, you may benefit from an additional 0.05% reduction in the spread.
Santander reserves the right to discontinue this benefit.

• Up to 40 years for applicants under 30 years old
• Up to 37 years for applicants aged 30 to 34
• Up to 35 years for applicants aged 35 or over

With a maximum age limit of 75 years at the end of the loan term.

• Life Insurance linked to the mortgage
• Home Multi-risk Insurance linked to the mortgage.

How does life insurance work?

• Covers the repayment of the loan in case of death or disability
• Can be taken out for one or multiple borrowers, with different coverage levels
• Allows you to choose the protection level and add optional coverages
• Includes additional protection options, such as unemployment coverage or double orphan protection.

How does home multi-risk insurance work?

• Includes protection against fire, floods, storms, water damage, seismic events, and theft or robbery
• You can choose to cover the building structure, the contents, or both
• Offers optional coverages, such as protection for walls, gardens, swimming pools, and even solar panels.