Caixa Geral de Depósitos mortgage for non-residents in Portugal. Everything you need to know

If you're considering purchasing property in Portugal and need to boost your budget, CGD (Caixa Geral de Depósitos), the largest bank in Portugal, is a solution worth exploring. 

I've personally applied for several different mortgages with Portuguese banks, and CGD was ultimately our choice. 

This guide goes into CGD’s mortgage offerings for non-residents, covering eligibility criteria, interest rates, required documentation, and the benefits and drawbacks of choosing CGD.

We'll also touch upon Homevest, a digital platform that simplifies the process of applying for a cross-border mortgage in Portugal.

What mortgage options does CGD offer for non-residents looking to buy property in Portugal?

For non-residents, CGD offers the following mortgage options:

• 30-year fixed rate
• Variable rate indexed to Euribor 6 months (plus spread)
• Mixed rate (fixed in the first 5 years), followed by a variable rate

What are the eligibility requirements for a CGD mortgage? 

To qualify for a CGD mortgage, non-residents must meet several requirements:

- Age Requirement: Applicants must be 21 years or older

- Residency Categories

• Foreign non-residents from the EU (including the UK) 

        - Stay in Portugal must not exceed 183 days per year

• Foreign non-residents from any country

        - Stay in Portugal must exceed 183 days per year

        - Must not have been a resident of Portugal in the past five years

        - Must establish a permanent residence in Portugal and engage in high-value activities

• Foreign non-residents with a Golden visa

        - Valid for a minimum of five years

        - Real estate investment must be at least 500,000 EUR, or renovation projects must cost a minimum of 350,000 EUR for properties over 30 years old or in urban revitalization areas

- Financial Criteria

• A maximum loan-to-value ratio is 80% (75% for buy-to-let properties)
• Loan term can be up to 30 years (25 years for buy-to-let properties)
• Applicants must have a clean credit history
• A down payment of at least 20-25% of the property's value is generally required

What documents are required for a CGD mortgage in Portugal?

As someone who has successfully applied for a mortgage with CGD, I know for a fact that non-residents must provide the following documents:

• Identification (ID or passport)
• Portuguese NIF (tax number)
• Employment contract 
• Credit report (from most or all countries you lived in)
• Primary residence documentation (lease contract or mortgage deed)
• Payslips from the last three months
• Bank statements from the previous six months (at least)
• Tax returns or income statements for the past two years
• Property ownership documents (land registry titles or mortgage deeds)

Homevest digitalizes the mortgage application process in Portugal for non-residents

Homevest empowers international buyers in Portugal with a digital platform that simplifies the mortgage process.

Homevest provides customers with an all-in-one platform to centralize their cross-border buying experience. Brokers and banks come together to speed up obtaining a cross-border mortgage in Portugal.

Explore the benefits of Homevest:

• user-friendly digital experience
• efficient communication between customers and involved parties
• transparency throughout the process
• assistance in comparing offers from top Portuguese banks

CGD mortgage in Portugal for non-residents: pros and cons

Considering a CGD mortgage involves weighing the benefits and potential drawbacks. From my experience with Caixa, here are the pros and cons:

Pros

• a good range of mortgage options
• the maximum loan-to-value ratio is 80%, requiring a 20-25% down payment from buyers
• favorable interest rates are available for non-residents, especially those subscribing to additional CGD products
• the bank staff are responsive and friendly

Cons

• strict eligibility criteria, including specific residency and investment requirements, may limit accessibility for some non-residents
• if you're going into a bank's physical location, be prepared for long waiting times
• the interest rates offered by CGD are relatively high compared to other providers, which may not be suitable for all borrowers

Ultimately, CGD offered us a good value and we were able to further bring down the mortgage interest rate by getting some of their other products. 

Other options are also available. Novobanco, Bankinter, and Santander are just a few of the lenders to consider. Choose what suits you best.

Sources used and checked in June 2024:

1. CGD mortgages for non-residents

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.