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. The agents will help you with all your doubts, paperwork, and bureaucracy. But to know in advance what you need for the simulation, keep reading the article.

So, to perform a home loan simulation, you need to share the following information:  

• Property purpose

One of the pieces of information you need to provide to proceed with an online home loan simulation is the purpose you will give to the property you wish to acquire.

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

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

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 as the official residence of the credit holders.

Secondary own housing means that owners use the property occasionally, except for renting out. As a rule, it is used as a holiday home.

Investment housing is acquired to put on the rental market, whether long-term, short-term, or local accommodation. It serves as an extra source of income, although credit conditions may be less advantageous than in the case of a first home.

• Available range of values

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

In this field, keep in mind 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 property value is 150 thousand euros, for permanent own housing, the bank will only lend 135 thousand euros, having to come up with 15 thousand euros.

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

• Headlines: ages, earnings, and expenses

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

The ages of the policyholders must still be mentioned, to analyze the contract term. Since limits were imposed on contract terms based on ages by the Bank of Portugal, it is important to know how far the maturity of the credit can be extended.

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

And it still needs to have approximate information on the average net income of the proposed as holders, current monthly expenses with other loans, as well as regular monthly expenses.

• Deadline for the contract you intend

Finally, you must indicate the term of the credit you wish to contract. The longer the term, the lower the monthly installment to pay, but the more interest you will pay.

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 Deadline Up to 30 years | 40 years Between 30 and 35 years | 37 years Over 35 years | 35 years

If you are considering applying for a mortgage, and after a simulation you determine that it is viable to proceed, you can always turn to the services of a credit intermediary. Poupança no Minuto agents provide free mediation, handling all the paperwork with the banks and answering all your questions.