Mortgage guide: What to consider after signing the contract.

5 pieces of information you should know about post-mortgage loan contracting.

Having a mortgage loan contracted implies active responsibilities, so the management is ongoing and there are factors that you should be informed about. Find out which ones in these 5 steps.

Stop being a guarantor: Options and procedures

Being a guarantor of a home loan implies taking responsibility for the debt payment if the main debtor does not do so. To stop being a guarantor, an agreement between the debtor and the bank is required. However, banks may resist this change, as the presence of a guarantor represents an additional guarantee. (Source: source)

A viable alternative is transferring the housing credit to another bank. During this process, it is possible to renegotiate the loan conditions, potentially eliminating the need for a guarantor, especially if the effort rate decreases.  

Second housing credit: Conditions and considerations

Hiring a second home loan after the first is possible, as long as the effort rate does not exceed the limits established by the bank. For secondary homes, banks usually finance up to 80% of the property value, compared to 90% for permanent own housing.

In addition, the fiscal conditions differ: There is no exemption from IMI for secondary homes, and IMT is calculated based on different tables. It is essential to compare proposals from different banks and analyze the European Standardized Information Sheet (ESIS) to make an informed decision.  

Lack and deferral of capital: Financial management strategies.

During times of financial difficulties, it is possible to renegotiate mortgage credit through grace period or capital deferment: grace period or capital deferment.

• Capital shortage: During an agreed period (usually between 6 and 24 months), only the interest on the loan is paid, deferring the payment of the capital. Although it temporarily reduces the monthly installment, it results in higher future installments and a higher total cost of credit.

• Capital deferment: A portion of the capital (for example, 30%) is deferred for payment in the last installment of the loan. This option reduces monthly payments throughout the contract but requires significant funds availability at the end of the term period.  

4. Credit refused due to Exceeded DSTI: Understanding and overcoming

The DSTI ratio (Debt Service-to-Income) represents the percentage of monthly income destined for credit payments. The Bank of Portugal recommends that this ratio does not exceed 50%, considering a stress factor of 3% in the interest rate.

If your credit is refused due to a high DSTI, you can look for alternatives such as renegotiating conditions with the bank or using credit intermediaries like those at Poupança no Minuto who can present solutions suitable for your financial profile.  

5. Early redemption of PPR for housing credit: Changes in 2025.

Until the end of 2024, early redemption of Retirement Savings Plans (PPR) for the payment of home credit without tax penalties was allowed.

However, this measure was not extended in 2025, and early redemption again implies penalties, even when intended for payment of housing credit installments.

It is advisable to plan ahead and consider other options to relieve monthly expenses, such as renegotiating or transferring the housing credit.  

Effectively managing a mortgage requires a deep understanding of the available options and the implications of each decision.  

When considering giving up being a guarantor, taking out a second loan, renegotiating conditions, or transferring the credit for more financial flexibility, it is essential to be well informed and, when necessary, seek specialized advice to make sound financial decisions. You can turn to Poupança no Minuto, as our credit intermediaries take care of the entire bureaucratic process at no cost. Get in contact here or simulate directly: