Informação LegalNeed a mortgage for construction?
If the house will be tailored to you, the credit will be too!
Discover the best credit for building a house
Prepared budgets?
Construction license ready to raise?
Then it is the right time to start your construction loan application.
Construction license ready to raise?
Then it is the right time to start your construction loan application.
Deadlines up to 24 Months
You have up to 2 years to build your house.
Capital in tranches
Pay interest only on the amount you use
Get the License
Request an inspection at your City Hall and enjoy your new home.
Fill out the form
Send us the documents
Know the proposals
Frequently Asked Questions about Home Construction Loans
1What are the purposes of Construction Credit?
The housing construction loan aims to finance the construction of your permanent or secondary home.
You can choose traditional construction, modular construction, or prefabricated houses.
2What amounts can I request?
Normally the minimum amount is from 10,000.00 euros.
The maximum amounts may vary depending on whether it is a loan for the construction of a permanent home or for the construction of a secondary/investment home.
For the construction of a permanent home, the maximum amounts can reach up to 90% of the final appraisal value.
In cases of constructing a secondary home or for investment, the maximum amount can usually reach 80% of the final appraisal value.
In both situations, the appraisal value of the land and the respective construction is of utmost importance for defining these amounts.
3What are the loan terms?
The maximum term can go up to 40 years, but the age of the applicants must not exceed 75 years at the end of the loan.
Since April 1, 2022, the Bank of Portugal recommends that the maximum term of new housing credit contracts and other loans with mortgage guarantees should not exceed:
-> 40 years, in the case of clients under 30 years of age;
-> 37 years, in the case of clients aged 30 years or older and under or equal to 35 years;
-> 35 years, in the case of clients over 35 years of age.
4What is the deadline I have to build?
The sooner you build, the better it will be for you, as in addition to paying less interest, you will likely also save on inspections.
Normally, the construction period is 24 months, but in special situations, it can be extended up to 36 months.
The time spent on construction is deducted from the total term of your loan; the sooner you can obtain the usage license, the longer the remaining time you will have to repay your loan.
5How is the capital released during the construction period?
After the deed is executed, you should start building your home; first, use your own capital, and this way you can save on interest.
After checking the progress of the work, the bank will release a tranche of capital proportional to the budget and percentage of completion of the construction. On this amount, you will only start paying interest.
Through interim inspections, the bank will release the remaining amounts.
