Buying a home, no mysteries

Before viewing homes, look at the numbers. An honest look at your starting point avoids disappointment later.

• Household income (gross and net)
• Savings available for down payment and costs
• Other existing loans (Bank of Portugal liabilities report)
• A comfortable monthly capacity for the payment

Know how much the bank will lend and what it costs per month — before falling in love with a home.

• Down payment needed: banks finance up to 90% of the lower of price and valuation
• Estimated payment at the current rate
• Effort ratio — banks prefer up to 35%
• Loan pre-approval: gives real negotiating power

The price of the home is not the cost of the home. Add the taxes and leave a margin — comfort is also security.

• Maximum price based on financing + down payment
• An extra 6 to 8% for IMT, Stamp Duty, registrations and loan costs
• Future monthly costs: condominium, IMI, insurance
• If it's too tight, it's too much — buy with margin

Search within the realistic budget, not the maximum. And view like a professional, not like someone in love.

• Define areas, type and non-negotiable criteria
• Visit at different times (light, noise, traffic)
• Check condition: structure, wiring, plumbing, damp
• Condominium: fees, planned works, minutes
• Compare total cost (price + taxes), not just the price

A strong offer is built on real comparables. After the agreement, the promissory contract protects both parties.

• An offer based on local data — this is where a local consultant is worth money
• Validate the property documents before signing (registry, tax register, licence)
• CPCV with loan-contingency clauses and clear deadlines
• Deposit: typically 10% of the value

The moment of truth — and what comes after it.

• Final loan approval and scheduling the deed
• IMT and Stamp Duty paid before or at the act
• Signing, payment and keys
• Land registration, transfers of water/electricity/gas contracts, insurance