Here are a few tips to keep in mind when you hunt around for your home loan.
Opt for the shortest loan term possible: while this will reduce interest in the long run, keep in mind that monthly payments will be higher. It’s essential to strike a balance with your income and other expenses.
Focus on paying off both interest and principal: this approach can lead to lower interest payments throughout the loan term as the principal amount decreases with each repayment.
Consider fortnightly instead of monthly repayments: this adjustment can potentially save you thousands in interest and help clear your mortgage sooner.
Maintain an LVR of at least 80%: aiming for this lower LVR can decrease the total interest paid and save you money. The catch is accumulating a 20% deposit. You’ll need to consider whether you prefer to enter the property market sooner with a higher LVR that might require mortgage insurance.
If you require mortgage advice, please contact us at info@a1-algarve.com
Why choose Mortgage Direct’s loan brokerage services?
Impartial Mortgage advice since 2006
- Access to a wide financial offer provided by the banks with which we have partnerships
- Impartial and transparent guidance
- Saving time and effort when searching for credit
- Search for the best banking products in Portugal according to the type of rate you want
- Assistance throughout the process of obtaining a loan
- Service in English, German and French
Mortgage Direct, registered with the BdP in the name of Assertiveprofit, Unip. Lda, with registration number 0004542.
Sérgio Fagundes
Credit Intermediary