You don’t have to use a mortgage broker to get a mortgage in Portugal – you could apply in any bank in Portugal – but it often makes more sense for people, particularly foreigners, to use a mortgage broker. Here’s why.
It Saves a Lot of Time
Applying for mortgages can be a time-consuming process. And that’s particularly true if you’re a foreigner as most comparison websites are only available in Portuguese.
Going from bank to bank, or even from one bank’s website to another, just isn’t time-efficient. Using a broker, on the other hand, is. Rather than fill out a mortgage application with each bank, when you use a broker, you just fill out one application and they forward it to all of the relevant banks.
But it isn’t just about filling out one application versus multiple. Brokers work with these banks on a daily basis so they know which banks are most likely to accept (or reject) you based on your income. So you save a lot of time simply by focusing on the banks most likely to offer you a mortgage. This is especially important if your income is “non-traditional” for example if you’re self-employed, have seasonal income, bad credit, or have multiple sources of income.
Brokers can compare the market
Comparison websites aren’t so common in Portugal, which means that you often have to do things the old-fashioned way. When it comes to mortgages, this means speaking to a broker and asking them to compare the market for you.
A broker will be able to take a few details, such as your income and outgoings, deposit, and age, and determine how big a mortgage you’ll be able to get and how much your monthly repayments are likely to be.
Brokers understand international clients
Getting a mortgage can be a confusing process anywhere, so it helps when you can speak to someone who’s familiar with the mortgage process in Portugal and in other countries. Most brokers deal with clients from all over the world, but particularly from countries like the UK, Germany, and the US, so they will be able to explain the differences and clear up any confusion that the banks may have with your application and supporting documentation.
You might know a little bit about the banks and lenders in your home country, but for many people, Portugal is unchartered territory. A mortgage broker has that first-hand knowledge – knowledge that you probably won’t be able to find online or anywhere else.
There’s Often No Additional Cost
Many brokers in Portugal work on a commission basis. The bank pays them a fee for referring you, so there’s no additional cost to you. Because there’s no cost to you, there’s really no reason not to at least speak to a mortgage broker to see what deals they’re able to get you.