Is it still possible to obtain mortgage loans with 100% financing?

Currently, 100% financing is still possible, however, with a large set of limitations, namely that it is the bank's own property.

In cases where the property is not owned by the bank, although it is possible to benefit from a high amount of financing - the market maximum currently stands at the lowest value between 90% of the deed value and 90% of the appraisal value - , institutions are not fully promoting financing after Banco de Portugal's recommendations.

When granting finance without requiring any initial input from the consumer, financial entities are taking a greater risk, that is, the probability of default by the customer is higher, since the loan amount and, consequently, the total cost of the loan. credit will be greater. Thus, banks are more careful when approving these types of operations.

As the banking institutions have houses in their possession, many properties - often due to non-payment of housing loans by other customers - in order to recover the value invested in these properties, they sell them at lower prices and with special conditions. Hence they offer the offer with 100% financing.

In addition, these special conditions may include benefits in the interest rate or exemption from the payment of initial fees.

Source: Save with ComparaJá.pt, Jornal Económico,
21 February 2020, 9:00 AM