What do I need to do a mortgage credit simulation?

If you want to move forward with a home loan simulation, contact the credit intermediaries Poupança no Minuto right away. The agents will help you with all doubts, paperwork, and bureaucracy. But to know in advance what you need for the simulation, keep reading the article.

So, to carry out a housing credit simulation, you need to share the following information:

• Property purpose 

One of the pieces of information you have to provide to proceed with an online home loan 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 housing credit may have different conditions.

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

Own permanent housing implies that the owners and their respective household live permanently on the property, inhabiting it for a long period of time. This should be intended to be the official residence of the credit holders.

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

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

• Available range of values

Afterwards, you need to indicate the range of values ​​that you have available to pay 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 property value is 150,000 euros, for permanent own housing, the bank will only lend 135,000 euros, having to pay 15,000 euros upfront.

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

• Headlines: ages, income, and expenses

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

Still need to refer to the ages of the policyholders, for analysis of the contract term. Since limits have been imposed on contract terms based on age by the Bank of Portugal, it is important to know how far it is possible to extend the credit maturity.

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

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

• Contract term you intend

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

But pay attention to the limits imposed on credit terms: if you are up to 30 years old, you can contract a maximum term of 40 years, between 30 and 35 years old, a maximum term of 37 years, and over 35 years old, a maximum term 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 hiring a home loan, and with a simulation determine that it is viable to move forward, 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.