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February 2020

How to obtain a mortgage loan?


More and more people are applying for a mortgage. However, this is not surprising. Such a loan allows you to switch to your own, ie buying your own home, apartment, etc. Many people dream of such an opportunity. Unfortunately, the conditions for obtaining a mortgage are quite restrictive. Of course, it all depends on the particular banking institution. Nevertheless, you have to consider different criteria anyway. What? What conditions must be met to be able to count on getting such a loan?

What are the conditions for obtaining a mortgage?

What are the conditions for obtaining a mortgage?

It should be emphasized that many banks pay close attention to the age of the borrower. It is assumed that the optimal number of springs on the back of the neck is a maximum of 35. Of course, the range starts from 18, because you have to be of legal age, but you probably do not need to explain to anyone.

It is worth noting that banks are very restrictive towards older people. Why? It is very easy to explain. It should be emphasized that a mortgage is usually a long-term commitment for a dozen or even several dozen years. Therefore, if someone is 45 years old at the time of application, then they are unlikely to receive a loan for 30 or more springs. You should be well aware of this fact. In general, the upper limit is approximately 70-75 years,

What else affects the issues of getting a mortgage?

What else affects the issues of getting a mortgage?

Of course, this is a credit history. Banks are the most supportive for people who have positive credit or loans experience. Subsequently, borrowers who have a clean file in this regard are best perceived. Of course, the situation is worst for people who had paid off various obligations in earlier years, but had trouble regulating such issues in a timely manner … It must be clearly stated – such people will almost certainly not receive a mortgage.

However, this is not all. It should be noted that banks are also focusing on current revenues. Of course, the more you earn, the more likely you are to get a mortgage. The other side of the coin, however, is that current liabilities also count. So if someone has a lot of expenses, then their creditworthiness suffers. The form of employment is also important. People who perform tasks based on an employment contract are perceived best. It should be noted that currently applicants for a mortgage must also take into account their own contribution. Currently it is 20%.

Can’t get personal credit approval? Find out why.

Have you seen your personal credit application rejected? It is important that you understand why this happened so as not to repeat the same mistakes in a next order.

First of all, you should understand how financial institutions determine whether to grant a loan or not. Then, see below, what are the various reasons that can cause a financial institution to deny you credit.


1. Your name is on the “black list”

name blacklisted

The first step is to confirm that your name is on the Credit Responsibility Center, popularly known as the “Banco de Portugal blacklist”. In this list, you can find the names of all people who have financial defaults. If your name is on the list, no bank in Portugal will be able to grant you a loan, at least until you correct those defaults. If this is the case for you, consider settling the arrears you owe and, after that, apply for credit again.


2. Has a very high effort rate

credit approval

Another situation that commonly leads to the rejection of personal credit is the fact that there is too much effort. Through this aspect, banks ensure that no one is financed beyond their means. The healthiest, financially speaking, would be that the loan installments do not exceed 15% of your income. As a rule, when the monthly installments of your credits exceed 30% of your earnings, the request for access to personal credit is declined. Do the math and see if this was the factor that weighed in the decision


3. Provided incorrect data

credit data

In order to get their credit application approved, some people use third party data or put outdated information on the forms, hoping that the banking institution will not notice the inconsistency between the data. This is a bad move, since the institution always does its own analysis of the candidate and, when discovering that information such as income or address is out of step with the reality, the trust that is deposited in him declines and the most likely is not get credit.


4. You don’t have a stable professional situation

4. You don

Much of the rejected personal credits are due to the lack of a stable professional situation. You must be prepared for some aspects of your life to influence obtaining credit, such as your employment relationship. Public sector workers, for example, tend to have greater job stability, which makes them, at this point, considered more likely candidates to obtain credit.


5. Your profile does not match the credit you requested

personal credit

Finally, you should know that it may not be your fault or your current financial situation. Sometimes your application can be rejected simply because your profile does not fit the profile of the financial institution or the type of credit you have requested. You should also consider that not all financial institutions use the same model for assessing loan applicants, that is, it was rejected by one institution, but it may well be able to be accepted by another.

So, if you didn’t get personal credit approval, don’t give up. You can always try to improve some aspects mentioned here and then try again to obtain credit from another financial institution. If you decide to have an intermediary at your side, the whole process will be facilitated and you will get approval quickly.