Great news if you are purchasing a property in Portugal, the interest rates on mortgage loans fell 2.4 basis points and reached a new low of 0.873% in January.
According to data from the National Statistics Institute (INE) for the purpose of financing house purchases, the interest rate for total contracts fell to 0.892 percent, down 2.3(compared to December).
The average value of the instalment fell 9€, to 285€.
With interest rates this low there is no question that now is the time to proceed with purchasing your dream property in Portugal.
The property market in Portugal and particularly the Algarve is currently booming with investors looking to capitalize on the low interest rates. The Algarve is famous for its wonderful weather, beautiful beaches, fishing villages, historical attractions, golf resorts and delicious food.
The combination of the Algarve’s beauty, great quality of life and low interest rates will no doubt continue to see a rise in property purchases.
This stunning 4 bedroom villa for sale in São Brás de Alportel at only 750,000€. The monthly payment below reflects the new interest rate:
Cost 750 000€
Down payment 150,000€
Interest 0.873%
Period 40 years
Payment 1,481.38€
A beautiful two bedroom townhouse for sale in Carvoeiro is made even more desirable with the new monthly payment amount below, based on a 20% down payment (79,000€):
Cost 395,000€
Interest 0.873%
Period 40 years
Payment 780,19€
Even if you do not have a property in mind yet, there is always the option to get your mortgage pre-approved. This is where you will be able to submit your details upfront to see what you are capable of borrowing. This will help you narrow down your property search as you will have a figure to work with now.
It is always highly recommended to speak with an experienced and registered mortgage broker in Portugal as they will already have an established relationship with the banks, meaning they will be able to obtain an excellent financial option for you.
Ideal Homes Mortgages has provided brokerage services since 2013 with a vision of providing service excellence, and ensuring clients requiring real estate financing were well informed and confident in their property purchases and investments in Portugal.
To book your FREE consultation with a registered mortgage broker, get in touch with the experts on info@idealhomesmortgages.com today to start the application process, or give them a call on +251 289 513 434.
