How are Portuguese mortgage rates set?

Most Portuguese home loans (credito a habitacao) are variable, priced as the 6-month or 12-month Euribor index plus a fixed bank spread, typically 0.8%–1.5%. Fixed and mixed-rate products also exist. Your effective rate is the index plus the spread.

How much deposit do I need to buy in Portugal?

The Bank of Portugal caps the loan-to-value at 90% for your own permanent home and 80% for second homes or non-residents, so you generally need at least a 10%–20% deposit plus enough for IMT transfer tax, stamp duty, and notary and registration fees.

How is the monthly mortgage payment calculated?

Portuguese loans use a standard amortising annuity. The monthly payment is M = P × r ÷ (1 − (1 + r)^−n), where P is the loan, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments over the term.

What is the mortgage affordability rule in Portugal?

Lenders generally limit total debt servicing to around 35%–50% of net household income (the DSTI ratio) and stress-test affordability at a higher rate. This tool re-computes the payment at a rate you choose above the base to show that buffer.

Does this calculator store my data?

No. All calculations run locally in your browser and nothing is uploaded, so your figures stay private.

Portugal Mortgage Calculator

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This Portugal mortgage calculator models a Portuguese home loan (credito a habitacao) the way local banks price it: a Euribor index plus a bank spread, repaid as a standard amortising annuity, within the Bank of Portugal loan-to-value limits. Enter your price, deposit, rate, and term to see the monthly payment, total interest, and an affordability stress test.

How it works

The loan amount is price − deposit, and the LTV is loan ÷ price. The Bank of Portugal caps LTV at 90% for an owner-occupied permanent home and 80% for second homes or non-residents, so the tool flags an LTV above those lines.

The monthly payment uses the amortising-annuity formula:

M = P × r / (1 − (1 + r)^-n)

where P is the loan, r is the monthly rate (annual ÷ 12), and n is the number of monthly payments. Total repaid is M × n, and total interest is total repaid − loan. The stress test recomputes M at a higher rate so you can see the payment if Euribor rises.

Example

On a €300,000 home with a €60,000 deposit, the loan is €240,000 at 80% LTV. At a 4% effective rate (say 12-month Euribor 2.5% + 1.5% spread) over 30 years, the monthly payment is about €1,146, with roughly €172,000 of total interest. Stress-testing at 6% lifts the payment to about €1,439 a month.

Notes

This is a principal-and-interest estimate. It excludes IMT transfer tax, stamp duty (imposto do selo), notary and registration fees, mandatory life and property insurance, and bank arrangement fees — all of which add to the real cost of buying in Portugal. Confirm current Euribor and your bank’s spread before relying on the figures.