Contratar crédito habitação? Valor de avaliação bancária por m2 aumentou

Mortgage loan in Portugal? The bank appraisal value per m2 has increased.

If you are thinking about hiring or transferring your housing credit, you should know that the bank appraisal value per square meter is higher. But what does this mean for the mortgage loan?

20 Nov 20234 min

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Start a process of housing credit or transfer? It's with Savings in a Minute! Don't waste any more time and contact the credit intermediaries to start the procedure as soon as possible. Or first read how much the bank appraisal value has increased and what it means in a housing credit.

Bank appraisal value per square meter is above market value.

According to data from the National Institute of Statistics, disclosed in a news article by Notícias ao Minuto, the value per square meter of bank evaluation increased by three euros more than last month.

In September 2023, there was a value of 1,541 euros per square meter for the bank evaluation, with a year-on-year growth rate equivalent to 7.8%. 

This variation deviates by 1.0% from the August value of 8.8%.

As for the registered number of bank evaluations, there were around 24.9 thousand processes carried out, representing "an increase of 1.3% compared to the previous period and a reduction of 3.5% on a year-on-year basis," as stated in the information.

More specifically, it was in the Autonomous Region of Madeira where the highest increase in property values per m2 was declared, compared to the previous month (2.8%), and in the Algarve the greatest decrease in values (-0.6%). 

Comparing the values to September 2022, the median value of bank evaluations had a higher variation in the Autonomous Region of Madeira, at 25.2%, and a lower variation in the Centro region, at 6.9%.  

What does the assessment represent in mortgage credit?

How does bank assessment impact mortgage credit? Note, first, that this is a procedure performed by banks when contracting credit, but also when transferring to a new bank. Through the procedure, you may have to pay a commission.

Bank appraisal aims to reach the real value of a property for the mortgage constitution. The bank needs to know how much the property is worth to proceed with the credit, and the value determined by the appraisal will have a direct impact on the amount that needs to be made available initially in own capital.

Currently, the bank can lend you up to 90% of the property value in housing credit for own and permanent housing, and 80% of the property value in secondary housing. However, it is important to note that if the property appraisal value is different, the bank finances the lower value between the acquisition or appraisal value.

That is, if you are going to buy a property for 285,000 euros, but it is appraised at 270,000 euros, the bank will lend you 90% of the latter. However, the purchase price remains the same. Therefore, the amount you have to give as a down payment will be higher. So, the higher the bank appraisal value assigned to the property, the more the borrower benefits.

Minimize the impact of housing credit costs with the right proposal.

To anticipate and minimize the impact of initial housing credit costs, such as a possible lower appraisal value than the acquisition amount, it is essential to have the right proposal for your financing.

In order to reach the lowest and most suitable proposal for you, you should collect several simulations from different banks to compare and decide.

This is where credit intermediaries come in: with experience in the market, these agents can deal with bureaucracy, communicate with various banks, and present proposals to you, helping you in the analysis and final choice.

The services of the Poupança no Minuto credit intermediaries are free, fast, and personalized. Contact us and ensure the support of an intermediary throughout your credit process!

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