What do I need to do a mortgage credit simulation?

If you are looking to move forward with a home loan simulation, contact the credit intermediaries Poupança no Minuto now. The agents will help you with all your doubts, paperwork and bureaucracy. But to find out in advance what you need for the simulation, keep reading the article.

So, to simulate a housing loan, you need to share the following information:

• Property purpose

One of the pieces of information you need to provide to proceed with an online housing credit simulation is the purpose you will give to the property you want to acquire.

This is because there are three different purposes and, depending on the purpose, the mortgage credit can have different conditions.

A property can be intended for own permanent housing, secondary own housing or housing for investment.

Having a permanent own housing implies that the owners and their respective household live permanently in the property, residing for a long period of time. This should be intended to be the official residence of the credit holders.

A secondary own housing means that owners use the property occasionally, except for renting. Usually, it is used as a vacation home.

And investment housing is acquired as a way to put on the rental market, whether long or short term or local accommodation. It serves as an extra source of income, although the credit conditions may be less favorable as in the case of the main residence.

• Available range of values

Then, you need to indicate which range of values you have available to offer for the property, indicating the minimum ceiling and the maximum ceiling.

In this field, consider that banks only lend up to 90% of the property value for permanent own housing, and 80% for secondary own housing.

For example, if the value of the property is 150 thousand euros, for permanent own housing, the bank will only lend 135 thousand euros, having to give up 15 thousand euros.

Therefore, evaluate the value available in equity to determine the maximum value that the property to be purchased can have.

• Headlines: ages, incomes and expenses

You also need to indicate how many holders will be borrowers of the credit because it will make a difference in the assessment of financial capacity. The more holders have the credit, the more income there is to meet the monthly installments. The risk of default is lower, so will be the effort rate.

You must still mention the ages of the holders, for analyzing the contract period. Since limits were imposed on contract durations based on age by the Bank of Portugal, it is important to know how far it is possible to extend the maturity of the credit.

Note that, when there is more than one holder, the age that counts for the maximum term limit is that of the oldest holder.

And you also need to have approximate information on the average net income of the proposed holders, current monthly payments for other loans, as well as regular monthly expenses.

• Deadline of the contract you intend

Finally, you must indicate the term of the credit you want to hire. The longer the term, the lower the monthly installment to pay, but more interest will be paid.

But pay attention to the limits imposed on credit deadlines: if you are up to 30 years old, you can contract a maximum deadline of 40 years, between 30 and 35 years old, a maximum deadline of 37 years, and over 35 years old, a maximum deadline of 35 years.

Age | Maximum term
Up to 30 years | 40 years
Between 30 and 35 years | 37 years
Over 35 years | 35 years

If you are considering taking out a mortgage, and after simulating it you determine that it is feasible to proceed, you can always turn to the services of a credit intermediary. The agents Poupança no Minuto offer free intermediation, handling all the paperwork with the banks and answering all your questions.