The term mortgage refers to the ways by which one can offer to accept a property as mortgage against the payment of a loan to those who need it. Usually it is found that the mortgagee or the one who is offering the mortgage is the one who dictates the terms and conditions which the mortgagor or the borrower has to conform to. Therefore it is extremely necessary for both the mortgagee and the mortgagor to be aware of the laws of the country and conform to legalities involved before undertaking the mortgage. In Portugal, this is extremely vital because the country has very strict laws with respect to property transactions which often act as a hurdle in case of such transactions. There are various different factors which govern the mortgage of properties in Portugal.

Requirements for offering mortgages-

The following criteria have to be fulfilled by those who wish to undertake mortgages. They need to possess the following documents-

• Conta Bancaria em Portugal or a Portuguese bank account
• Cartao de Residencia or a Residency Card of Portugal
• Testimony of the source of regular income
• Contrato or agreement with national and international organizations functioning in Portugal
• Numero Fiscal de Contribuinte or a Portuguese Tax Code

The banks are the dominant lenders and their loan rates differ fro the resident and non resident Portuguese. For those who are permanent and bona fide residents of the country, they offer around 70% to 90% of the price of the property. For the non resident ones and the non Portuguese, the percentage varies between 60% to 70%. Around 1% levy is charged by the banks on the mortgage request after the property is examined and estimated by its agents known as the Calculista de Obra or Superintendente de Vistoria or Avaliado.