Novobanco offers financing options of up to 80%
Novobanco offers financing options of up to 80%

Novobanco mortgage for non-residents in Portugal: everything you need to know

Learn how to get a Novobanco mortgage in Portugal as a non-resident. Find out the requirements and documents you need to qualify.

Adrian Volenik
Written by: Adrian Volenik
Published at 2024-05-23
Last updated on 2024-06-11
Readtime 3 minutes

When buying a property in Portugal as a non-resident, choosing the right bank is of the utmost importance. 

Novobanco, one of the largest banks in Portugal, offers mortgages at competitive rates, making the process convenient and straightforward for non-residents. 

However, to find all the best mortgages in Portugal suited to your profile, use Homevest. This free digital platform, allows you to request and compare mortgages without leaving your house. 

What are the mortgage options Novobanco offers for non-residents looking to buy property in Portugal?

Novobanco offers two different mortgage types for foreigners, or estrangeiro, as they call them in Portugal. 

These are:

  • Variable rate, indexed to 12-month Euribor, plus spread
  • Fixed-rate, from 2 to 5, 10, 15, 20, 25 or 30 years, plus spread

The 'spread' is the additional interest rate the bank adds to the base rate (in this case, the 12-month Euribor) to calculate your mortgage rate.

Portuguese banks also typically offer mixed-rate mortgages, but Novobanco doesn't have this option now. 

What are the eligibility requirements for a Novobanco mortgage?

For those living in the EU, the UK, the USA, or Canada, the bank offers financing options of up to 80% of the appraised deed value (the lower value is chosen).

Here are other requirements:

  • Loan term up to 30 years
  • Mortgage holders can't be older than 75 at the end of the term
  • A clean credit history
  • Permanent employment
  • Minimum 6 months employment

What documents are required for a Novobanco mortgage in Portugal?

Just like other Portuguese banks and lenders, Novobanco asks for the same documents. 

These are:

  • A copy of your ID or passport
  • Employer declaration and the last three payslips
  • Latest IRS declaration or Settlement Note
  • Standardized Information Sheet (FINE)
  • Bank proposal

These may or may not be different from what banks ask in your country, but they are part of a standard procedure in Portugal. This typically involves a detailed review of your financial and employment history and an assessment of the property you wish to buy.

Although this is a formal list of documents, be ready to supply additional documents regarding you, your prospective property, and your income or credit history. 

If the bank has concerns about your application, they will not immediately decline it. Instead, they will strive to find a mutually beneficial solution, demonstrating their commitment to working with you. 

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

Homevest is a digital platform that can speed up the mortgage process for non-residents interested in buying property in Portugal. 

Whether in the UK, Germany, or the US, you can request mortgage offers from Portuguese banks via Homevest to compare them. The documents required for your credit file can be uploaded and centralized on the Homevest platform, where they undergo a verification process. 

Customers benefit from efficient and transparent communication between involved parties, making it easier to track the progress of their applications. This streamlined process can save you time and money, and increase your chances of a successful mortgage application. 

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

When we were applying for a mortgage with Novobanco, we were pleasantly surprised by their communication and the speed of the whole process. 

They quickly responded to our queries and kept us updated at every step of the way. We were able to open the bank account remotely, and our account manager sent our bank cards to our address. 

However, be aware that the bank uses only appraisers who belong to the bank, and they are swamped. If your valuation isn't what you hoped for, it could be some time before they can do a new one. 


  • free life insurance
  • good communication
  • transparency 
  • competitive mortgage rates


  • appraisal is only done by appraisers hired by Novobanco and certified by the CMVM (Portuguese Securities Market Commission)
  • no ability to lower the spread if you get their other products

Sources used and checked in May 2024:

  1. Novobanco Mortgages

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.

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