Are you thinking of buying a prefabricated house and would you like to know what mortgage options there are in Portugal? In fact, modular and prefabricated houses have not only attracted many Portuguese who want to buy a new home, but they are also an interesting and cheaper solution, built to suit your needs.
Traditional houses vs prefabricated houses: what are the differences?
Prefabricated houses are different from traditional houses in many ways, from the construction process to decoration and personalisation, not to mention their prices. Prefabricated houses are built in factories and then transported to your home where they are assembled almost piece by piece. In this sense, you can have the house ready quickly and with a lower investment.
Traditional houses, on the other hand, can offer flexibility in terms of decoration, but are much more time-consuming to build and can take several months or even years to complete. In addition, traditional houses tend to be more expensive, due to the high costs of construction, labour and so on.
Portuguese law, however, does not distinguish one from the other, and for both types of property it is necessary to submit an architectural project to the respective town hall, which will then be responsible for issuing a building permit and housing licence. Don’t forget that the house must be registered at the Land Registry Office and the IMI (Municipal Property Tax) must be paid, which also applies to modular homes.
Financing for prefabricated houses: does it exist in Portugal?
In Portugal, “there are several banks ready to finance the purchase of prefabricated houses”. And there’ even a specific financing solution: Housing Credit – Prefabricated Houses for those who need to buy, build or carry out work on their modular home, whether it’s for their own permanent residence or as a holiday home. The maximum term for this loan for prefabricated houses is up to 25 years, provided that the client’s maximum age does not exceed 75. But what are the conditions and maximum amount of the home loan? Below you can find out more about the characteristics of home loans for prefabricated houses.
Amount: the minimum loan amount for financing prefabricated houses is 5,000 euros. The maximum amount depends on the type of home. For the purchase of a permanent home, the maximum amount is the lower of 80 per cent of the appraised value and 90 per cent of the investment value. For a holiday home, the maximum limit is 80% of the appraised value or the investment.
It’s also important to remember that before you take out a mortgage, you can do a detailed simulation and even contact a credit intermediary who can help you through the whole process.
You can also find out from the bank what other documents are required to proceed with a mortgage for a modular or prefabricated house. Generally, the documents requested are the same as those requested for any other home loan.
