Can Canadians Get a Mortgage in Portugal?
← Guide to Portugal for Canadians · Part of our 8-step guide to moving to Portugal from Canada
Yes, Canadians can get a mortgage in Portugal. Portuguese banks regularly lend to non-residents, including buyers from Canada, but the rules are stricter than for locals. Expect to put down a larger deposit, show solid income, and have cash ready for closing costs. This guide explains how a mortgage in Portugal works for Canadians, what banks look for, what it costs, and whether financing from Canada might be a better option.
How Much Will a Portuguese Bank Lend a Canadian?
For non-residents from outside the EU, most banks lend 60% to 70% of the property’s value (the lower of the price or the bank’s valuation). A few lenders go higher for strong applicants. Portuguese residents buying a primary home can borrow up to 90%, so becoming a resident later can open up better terms.
That means a Canadian buying a €400,000 home should plan for a deposit of €120,000 to €160,000, plus closing costs.
The Rules Banks Must Follow
Banco de Portugal sets limits that every lender follows:
- Debt-service-to-income: your total monthly debt payments, including the new mortgage, should generally stay at or below 50% of your net income.
- Maximum term: 40 years, and shorter for older borrowers. Many banks also want the loan repaid by about age 75.
- Stress testing: banks check that you could still afford payments if interest rates rise.
Mortgage Rates in Portugal
Most Portuguese mortgages are variable or mixed-rate, priced as Euribor plus the bank’s spread. Non-residents usually pay a higher spread than residents. In 2026, the 12-month Euribor has been in the high 2% range, and many non-resident borrowers have seen all-in rates of roughly 3.5% to 4.5%. Fixed rates for an initial period are also available. Rates change often, so get current quotes from several banks or a licensed mortgage intermediary.
What You Need to Apply
- Your Canadian passport
- A Portuguese NIF. See how Canadians get a NIF
- A Portuguese bank account. See how to open a bank account in Portugal
- Recent pay stubs and an employment letter, or business financials if self-employed
- Your last two years of Canadian tax returns and Notices of Assessment
- Three to six months of bank statements
- A Canadian credit report (Equifax or TransUnion)
- Details of existing debts, including any Canadian mortgage
Documents may need certified translations. Gathering them early saves weeks.
The Costs of a Portuguese Mortgage
- Stamp duty on the loan: 0.6% of the amount borrowed for terms over five years, plus a small stamp duty on interest
- Bank valuation: usually a few hundred euros
- Arrangement and processing fees: vary by bank
- Life and home insurance: normally required by the lender
These come on top of the purchase taxes. Non-residents now pay a flat 7.5% IMT, which cannot be added to the mortgage. See the full breakdown in our guide to Portugal property taxes and closing costs for Canadians.
The Mortgage Process, Step by Step
- Get pre-approved before you make an offer, so you know your budget.
- Make an offer and sign the promissory contract (CPCV), usually with a 10% to 30% deposit. Make sure your lawyer includes a financing condition where possible.
- Bank valuation of the property.
- Final approval and loan offer.
- Sign the deed and mortgage at the notary on closing day.
From application to closing, plan for about four to eight weeks. Our guide to the legal process of buying property in Portugal explains each contract in detail.
Portuguese Mortgage vs. Financing from Canada
Some Canadians use equity from their Canadian home instead, through a HELOC or a refinance. Compare both options:
| Portuguese mortgage | Canadian HELOC or refinance | |
|---|---|---|
| Currency | Borrow and repay in euros, matched to the property | Borrow in CAD, exposed to exchange rate swings |
| Deposit needed | 30% to 40% plus closing costs | Can fund the full purchase if you have equity |
| Buying power | Your offer usually depends on loan approval | Buy like a cash buyer, often a stronger offer |
| Rates | Euribor plus spread | Canadian prime or posted rates |
If you plan to rent the property, a euro mortgage paid from euro rental income avoids currency risk. Read Step 6: Investing and Renting Out Property in Portugal for the rental side.
Tips to Improve Your Approval Odds
- Pay down Canadian consumer debt before you apply
- Keep your income documents simple and consistent
- Move savings into your Portuguese account early to show history
- Use a licensed mortgage intermediary who works with non-residents
- Choose a property with clean paperwork, which speeds up valuation
FAQs: Mortgages in Portugal for Canadians
Can Canadians get a mortgage in Portugal?
Yes. Portuguese banks lend to Canadian non-residents, usually up to 60% to 70% of the property’s value, subject to income checks.
How much deposit do I need to buy in Portugal as a Canadian?
Plan for a 30% to 40% deposit if you finance in Portugal, plus about 9% to 11% of the price for taxes and closing costs as a non-resident.
What are mortgage rates in Portugal for non-residents?
Most loans are Euribor plus a bank spread. In 2026 many non-residents have seen all-in rates of about 3.5% to 4.5%, but rates change often.
How long does it take to get a mortgage in Portugal?
Usually four to eight weeks from application to closing, if your documents are ready.
Is it better to use a HELOC in Canada or a Portuguese mortgage?
A HELOC can let you buy like a cash buyer, but it exposes you to CAD and euro exchange rate swings. A Portuguese mortgage keeps the debt in euros. The right choice depends on your equity, income and plans for the property.
Talk to a Portugal Property Specialist
Every purchase is different, and Portugal’s tax rules change often. If you are a Canadian thinking about buying in Portugal, get in touch with Annamarie for a no-pressure conversation, or tell us what you are looking for on our Help Me Find a Property page.
This article is general information, not tax or legal advice. Confirm the numbers for your situation with a Portuguese lawyer and a Canadian tax professional.
Have more questions?