How to find a mortgage broker in Portugal
If you’re planning to buy a property in Portugal, mortgage brokers can help you secure financing for your dream home. Find out how they can assist you below.
The role of a Portuguese mortgage broker
A mortgage broker acts as an intermediary between you (the buyer) and potential lenders – banks. It’s their job to help you get a mortgage in Portugal based on your ability to pay and at the best rate possible.
There are three key things that mortgage brokers do:
- Understand your needs
Experienced brokers take time to understand your financial situation, preferences and goals.
They’re able to assess your borrowing capacity and your ability to repay the loan, considering factors like income, credit history and existing debts.
- Access to lenders
As an individual, you won’t have access to the whole market. A broker will have access to multiple lenders, including banks, credit unions and private institutions.
They compare mortgage products, interest rates and terms, to find the best fit for you.
- Negotiation and advocacy
Brokers negotiate on your behalf to secure favourable terms. They’ll also advocate for you during the application process to ensure a smooth experience for all.
Finding a reputable broker
When looking for a trusted mortgage broker, look for licensed brokers with a solid track record. To operate in Portugal as a mortgage broker, one must obtain a license from the Bank of Portugal. The license name is “Intermediário de Crédito” and is issued by the country’s central bank and regulatory authority.
This license ensures certain standards are withheld in regard to professionalism, competence and ethics.
Opt for brokers who are familiar with the area you’re buying in, as they’ll be able to guide you on regional differences and legal requirements.
You should also do your own research. They have reviews online, on Google and Trustpilot. See if they’ve worked with non-residents before.
As for fees, a good broker will be transparent about their fee structure in your initial conversation and understanding whether it’s a flat rate or on commission will help you decide which broker to use.
Language barriers
When choosing a Portuguese mortgage broker, they may not be Portuguese.
However, the application for your mortgage and any further documentation will all be in Portuguese, so an English-speaking broker will be helpful if you don’t speak the language. You want clear communication with your lender. You need to be sure of exactly what is happening with your finances. Your mortgage broker in Portugal will be able to translate and demystify the process for you.
There are subtleties and intricacies with any language, and with financial and legal terminology it is particularly important to have a proper translation of the true meaning of any documentation. Using an online translation service or translation app may not give you an accurate translation.
When to contact a mortgage broker
We advise that you get in touch with a mortgage broker in Portugal before you start seriously looking at properties.
The initial conversation will likely be about what you can afford. This is crucial to understanding your mortgage options.
It also helps when you come to work with an estate agent if you already have a decision in principle, as they’ll recognise that you’re a serious buyer.
Fees associated with hiring a mortgage broker
A mortgage broker in Portugal will typically charge a commission for their services. The amount varies depending on the broker. Some may have a flat fee, while others may charge a percentage of the loan amount (usually 1-2%). Enquire about fees during your initial consultation so you can make an informed decision down the line.