Great news for international buyers purchasing a luxury home in Portugal: the interest rates on mortgage loans fell 2.5 basis points and reached a new low of 0.826% in April.
According to data from the National Statistics Institute (INE) for the purpose of financing house purchases, the interest rate for total contracts fell to 0.844 percent, down 12 compared to April 2020. The average value of the installment fell 22€, to 276€. With interest rates this low there is no question that now is an interesting moment to proceed with purchasing a luxury 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, delicious food, and some of the most important golf resorts in the world.
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€
This traditional 3+1 Bedroom Villa For Sale in Ferreiras is made even more desirable with the new monthly payment amount below, based on a 20% down payment (107,000€):
Cost 535,000€
Interest 0.873%
Period 40 years
Payment 1,056.72€
Getting a mortgage pre-approved is a good option especially for those buyers who want to buy but still haven’t found a property.
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 the purchase.
Ideal homes international has a large real estate portfolio and offers mortgage advisory services to potential buyers of properties in Portugal.
